India has lined up $ 20 billion as investment in oil and gas as well as petrochemical and fertiliser projects in the Persian Gulf country.
Oil Minister Dharmendra Pradhan, on a visit to Tehran said that Indian companies could invest up to $ 20 billion and India is interested in setting up petrochemical and fertiliser plants, including those in Chabahar SEZ, either through a joint venture between Indian and Iranian public sector companies or with private sector partners.
He also requested Iran to allocate appropriate and adequate land in the SEZ. He further requested the Iranian side for favourable treatment in the pricing of gas for India and supply of rich gas at competitive price on long-term basis for the life of joint venture projects Indian companies are interested in setting up.
Currently oil is the biggest import component of Indian imports. Current Account Deficit (CAD) is highly dependent on fluctuating global oil prices. Hence, setting up of Oil & Gas Project by Indian companies overseas can help provide a buffer to volatile oil prices.