With the US and other western powers easing sanctions against Iran, India has been in talks with Tehran to set up a gas-based urea manufacturing plant at the Chabahar port, besides developing a gas discovery ONGC had made.
The total investment in the projects will be around Rs 1,00,000 crore, Road Transport, Highways and Shipping Minister Nitin Gadkari said today.
Asked about the development of the port, he said, "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 Rs 1 lakh crore, but that depends on negotiations with Iran."
On talks on supply of natural gas, Gadkari further said, "Iran is offering gas to India at USD 2.95 per million British thermal unit to set up urea plant at the Chabahar port in Iran. India is negotiating the gas price and has demanded it at USD 1.5 per mmBtu rate."
The rate offered by Iran is less than half the rate at which India currently imports natural gas from the spot or current market. Long-term supplies from Qatar cost four-times the Iranian price.
"India is ready to make huge investments in Iran. If urea plant is set up, it will result in slashing of urea prices in India by 50 percent and cut on huge subsidy on urea, which is Rs 80,000 crore," Gadkari added.


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