India has offered UAE stakes in petrochemical plants and refinery projects as it seeks to boost energy ties with the cash-rich Gulf nation.
Oil Minister Dharmendra Pradhan, who is 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 USD 75 billion in India.
On offer was 26% stake for USD 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 per cent equity available for USD 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 USD 530-850 million can get the UAE 25-40%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% 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.
An official statement said the Minister in his meeting with business leaders called for greater economic and strategic ties between India and UAE.
“India-UAE trade has increased phenomenally in the last half a century. The trade, valued at USD 180 million per annum in the 1970s, is today around USD 60 billion making UAE, India’s third largest trading partner since 2014-15,” the statement quoted him as saying.
There is an estimated USD 8 billion UAE investment in India of which around USD 3.13 billion is in the form of foreign direct investment, while the remaining is portfolio investment and UAE is the eleventh biggest investor in India in terms of FDI.
Pradhan said India genuinely believes that there is potential to transform the buyer-seller relationship with UAE in energy into a genuine energy partnership. India has allowed 100% FDI in oil and gas exploration and production, refining, pipelines and fuel marketing.
Also, the government last month announced Hydrocarbon Exploration Licensing Policy (HELP) to streamline the award of hydrocarbon acreages under a new fiscal and contractual regime.
Highlighting the major points in HELP, he said companies can now explore and produce conventional oil and gas as well as unconventional hydrocarbon such as CBM and shale under a single license.