Road Transport, Highways and Shipping Minister Nitin Gadkari has revealed India's plans to invest £10 billion in Iran to set up a gas-based urea manufacturing plant at the Chabahar port on the Persian Gulf that would bring down the cost of the compound by 50 per cent. Iran has offered to supply natural gas at $ 2.95 for a urea plant but New Delhi wants to the rates to lower to $ 1.5.
“Various ministries will give their report by September 28, based on which a final decision will be taken. India is ready to invest more than £10 billion, but that depends on negotiations with Iran. If a urea plant is set up, it will result in slashing of urea prices in India by 50 per cent and cut on huge subsidy on urea, which is £8 billion,” Gadkari said.
The rate offered by Iran is less than half at which India currently imports natural gas from the spot or current market. India has pledged to invest around $ 85 million in developing the strategic port off Iran's south eastern coast, which would provide India a sea-land access route to Afghanistan bypassing Pakistan. Gadkari said the Centre is targeting a net profit of £250 million from its 12 major ports in the next two years, while shipping and waterways would contribute at least 1 per cent to the country's GDP by March 2016.
He further said the government is going ahead with the port modernisation programme and his Ministry will seek Cabinet nod on the same.
