New Delhi: India and Iran on Saturday extended bilateral ties including investment in Chabahar port project and supply of LNG.
The long time friendship was further extended after the signing of a joint agreed document covering specific projects of cooperation in energy sphere between India and Iran.
"The areas covered are development of Farzad-B block in Iran, petrochemical and fertilizer projects in Chahbahar port and supply of LNG to India," said Petroleum Minister Dharmendra Pradhan led a business delegation to Iran that included officials of Indian Oil Corp, ONGC Videsh, Oil India, Engineers India, MRPL, NALCO and RCF.
"Good to see interest among Indian PSUs and private companies to invest in various projects in Chahbahar Port which is less than 1,000 km from Kandla port," Pradhan said in a series of tweets.
Pradhan discussed with Iranian officials the prospect of Indian investment in Iranian Free Trade Zone. He also had an informative meeting with Valiollah Seif, Governor of Central Bank of Iran.
In a bid to facilitate fund flows for Chabahar Port Development project and export of steel rails by STC, the Cabinet recently approved more than tripling of the funding for exports to Iran to Rs 3,000 crore through the Export Development Fund (EDF) of the Exim Bank with a view to improving bilateral trade and strategic ties.
The proposal will step up the country's exports to Iran and deepen India's relationship as a strategic partner.
The approval is for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks led by Central Bank of Iran for financing the purchase of goods and services from India to Rs 3,000 crore, from Rs 900 crore. This will be done by utilising EDF.
The Exim Bank and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs 900 crore under the EDF.
The increase in quantum to Rs 3,000 crore will enable the Exim bank to provide buyer's credit facility to Iran secured via sovereign guarantee from Iran for the exports.
This will provide an opportunity to Indian companies to penetrate and enhance their footprint in Iran, along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activity in India.
http://www.btvin.com/article/read/news/5200/india--iran-agree-to-develop-chabahar-project--enhance-ties
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