Lok Sabha Question No. 1242 (UNSTARRED), answered on 2016-05-02
Subject: Investment in Oil/Petrochemical Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SUDHEER GUPTA, DHANANJAY BHIMRAO MAHADIK, GAJANAN CHANDRAKANT KIRTIKAR, SUNIL BALIRAM GAIKWAD, VIJAYSINH MOHITE PATIL, BIDYUT BARAN MAHATO, HEENA VIJAYKUMAR GAVIT, KUNWAR HARIBANSH SINGH, JAYAKUMAR JAYAVARDHAN, T. RADHAKRISHNAN, R. GOPALAKRISHNAN, ELUMALAI VELLAIGOUNDER, GEETHA KOTHAPALLI, VIJAY KUMAR S.R.

## LOK SABHA UNSTARRED QUESTION NO.1242 TO BE ANSWERED ON 2 ND  MAY, 2016

## INVESTMENT IN OIL/PETROCHEMICAL SECTOR

1242.  SHRI SUDHEER GUPTA:

SHRI DHANANJAY MAHADIK:

SHRI GAJANAN KIRTIKAR:

DR. SUNIL BALIRAM GAIKWAD:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI BIDYUT BARAN MAHATO:

DR. HEENA VIJAYKUMAR GAVIT:

KUNWAR HARIBANSH SINGH:

DR. J. JAYAVARDHAN:

SHRI T. RADHAKRISHNAN:

SHRI R. GOPALAKRISHNAN:

SHRI V. ELUMALAI:

SHRIMATI KOTHAPALLI GEETHA:

SHRI S.R. VIJAYAKUMAR:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of Petroleum and Natural Gas be pleased to state:

- (a) whether  the Government  proposes  to  Invest  $20  billion in oil,  gas  and petrochemicals sector in joint ventures with Iran and has also signed a Memorandum of  Understanding  (MoU)  in  this  regard  recently  and  if  so,  the  details  thereof  along with the likely benefits of the said move to the country;
- (b)  whether  the  Government  also  proposes  to  Import  LNG  from  Iran  through  a planned Iran-Pakistan-India pipeline project and also set up a gas cracker/LPG unit there and if so, the details thereof and the response of the Iran Government thereto;
- (c) the details of the latest development in the long pending rights to develop FarzadB gas field in the Persian Gulf discovered by ONGC Videsh Limited (OVL);
- (d) the details of payments pending with Indian refiners towards purchase of oil from Iran and the steps taken/being taken to clear the payments at the earliest; and
- (e)  the  steps  taken/being  taken  by  the  Government  to  strengthen  the  bilateral relation with Iran in the oil and petrochemical sectors?

## ANSWER

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) (श्री धमेन्द्र प्रधान) MINISTER OF STATE(INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS(SHRI DHARMENDRA PRADHAN)

- (a) During his visit to Iran on 9 th April, 2016, Shri Dharmendra Pradhan, Minister of State(Independent Charge) for Petroleum and Natural Gas conveyed to the Iranian side that the Indian Companies could invest up to $ 20 billion and were interested in

setting up petrochemical and fertilizers plants, including in the Chahabar SEZ, either to joint venture between Indian and Iranian public sector companies or with private adequate land in SEZ.  No MoU was signed in this regard.

(d)  During his visit to Iran on 9 both sides, were available.

sector  partners.    In  this  regard,  he  requested  Iran  to  allocate  appropriate  and (b)  During his visit to Iran on 9 th April, 2016, Shri Dharmendra Pradhan, Minister of State(Independent Charge) for Petroleum and Natural Gas expressed India's interest in importing LPG from Iran and said that companies from both side could discuss on setting up an extraction plant in Chahabar, if required.  Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-India-Pakistan Pipeline.  He also expressed India's interest in setting up an LNG plant and gas cracker in Chahabar port.  He also requested Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects that Indian companies are interested in setting up.  He said that competitive gas pricing was crucial in making the projects attractive for the prospective investors. (c)  During  the  visit  of  Minister  of  State(Independent  Charge)  for  Petroleum  and Natural  Gas  to  Iran  from  9-10  April  2016,  both  sides  discussed  the  developments regarding Farzad-B gas fields and expressed confidence on concluding an agreement at the earliest. th April, 2016, Shri Dharmendra Pradhan, Minister of State(Independent Charge) for Petroleum and Natural Gas conveyed that India was committed towards making payments as and when banking channels, acceptable to

(e)    Matters  relating  to  oil  and  gas  are  discussed  at  various  levels  including  Joint Working Group, Joint Commission as well as at  the  level  of  Ministers.    There  are regular  exchange of delegations to pursue matters of mutual interest.  The visit of Shri Dharmendra Pradhan, Minister of State(Independent Charge) for Petroleum and Natural  Gas  to  Iran  on  March  9-10,  2016  who  was  accompanied  by  a  business delegation which included CEOs of private and public sector companies was a step in this direction.

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