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India offers stakes to UAE in petro projects

Staff writer |
India has offered UAE stakes in petrochemical plants and refinery projects as it seeks to boost energy ties with the cash-rich Gulf nation.

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Oil minister Dharmendra Pradhan, who is currently on a two-day visit to the UAE, promised "fair, transparent and attractive" policy regime for investing in oil and gas sector in India through "appropriate policy, regulatory and fiscal interventions".

Addressing industry captains in Dubai, he showcased investment opportunities for UAE, which had in August last year committed to invest $75 billion in India.

On offer was 26 percent stake for $700 million in state-owned Oil and Natural Gas Corp's (ONGC) about-to-be-commissioned petrochemical project at Dahej in Gujarat.

Besides, there was 24 percent equity available for $200 million in expansion being planned by Bharat Petroleum Corp Ltd (BPCL) of its subsidiary Bina refinery in Madhya Pradesh, from 6 million tonne to 7.5 million tonne.

Also, an investment of $530-850 million can get the UAE 25-40 percent stake in HPCL's planned petrochemical plant on the Andhra coast, he said, adding that the Gulf nation can also invest in the planned 60 million tonne in Maharashtra and the Jagdishpur-Haldia and Paradip-Surat gas pipelines.

"UEA makes up for 8 percent of our oil imports. We are trying to import more oil from UAE. In 2016-17, we plan to import 2.5 million tons more oil than 2015-16's purchase of 16.11 million tons," he said.

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