Oman has agreed in-principle to invest in India USD 3 billion for revival of few closed plants of Fertiliser Corporation of India, Hindustan Fertiliser Corporation Ltd and the expansion in RCF, this was done in the sixth Session of the India Oman Joint Commission Meeting (JCM) held by India and Oman here.
The sixth session of the India Oman Joint Commission Meeting, was led by Minister of Commerce & Industry Anand Sharma while Omani side was led by their Minister of Commerce & Industry Maqbool Ali Sultan.
The meeting reviewed the entire gamut of bilateral economic relations and means enhancing bilateral trade, which rose to 4.5 billion last year, even in face of severe recessionary pressure. "This initiative is expected to function as a catalyst to promote and partnership between the private sectors of the two countries and enhance the trade and investment between the two countries," Sharma said.
Sharma also stressed on the need for the fund to be operationalised and augmented immediately. Both the sides agreed to form a senior level working group representing Government of India, RCF, Krishak Bharati Cooperative Limited (KRIBHCO), from Indian side and Oman Oil Company from Oman side for initiating the due diligence.
BPCL and Oman Oil Marketing Company agreed to collaborate and jointly study the possibility of setting up a lube blending plant in Oman and marketing in neighbour countries.
The Government of India and Oman agreed to work on various verticals including Agriculture, Airports, sea ports, and railways, hospitals, power including nuclear power. In November 2008, the India-Oman Joint Investment Fund was set-up with a seed capital of USD 100 million, to be increased up-to USD 1.5 billion, through an MOU signed between the two sides.
The Government of Oman has also expressed its keenness for setting up super-speciality hospitals in India and diagnostic facilities in the form of joint-venture, for which Oman delegation would go to India shortly.
Both the sides also identified sectors for investment cooperations such as Agriculture, Airports, sea ports, and railways, hospitals, power including nuclear power, renewable energy including solar and wind energy, mining, oil and gas, educations and skill development, tourism, health care, infrastructure and chemical fertilisers.
They have also agreed to pursue cooperation in field of Human Resources Development especially skill development in the fields of Technology, Management and Information Technology including in small and medium enterprise sector. Investments in agro processing specially in Indian SEZs were also discussed.
Oman has strategic location, and has entered into free trade agreements with several countries like USA, which offers huge opportunities which offers huge opportunities for Indian products to these markets apart from the Gulf Cooperation Council and the larger Middle East and Northern Africa region.
The Oman has also agreed to expand the capacity of Oman India Fertiliser Company SAOC (OMIFCO), which is currently producing 1.6 lakh tonnes of fertilisers in the
country, to about 20 lakh tonnes.
The Oman India Fertiliser Company SAOC is owned 50 per cent by Oman Oil Company SAOC , 25 per cent by Indian Farmers Fertiliser Cooperative Limited and 25 per cent by Krishak Bharati Cooperative Limited.
OMIFCO has been established,as the result of an initiative by the Governments of Oman & India,in order to construct, own and operate a modern world scale two-train ammonia - urea fertiliser manufacturing plant at the Sur Industrial Estate in the Sultanate of Oman.
The total amount of investment between Oman and India is around USD 7.5 billion, out of which USD 4.5 billion investment is from India to Oman and USD 3 billion is from Oman to India.
India has also offered to provide training and consultancy services to Oman Refineries and Petrochemicals Company (ORPC). Indian side would provide information on potential investment opportunities opportunities in the area of chemicals and speciality chemicals and speciality chemicals to Oman side for possible consideration.
The Government of Oman has requested India to activate the MoU signed between the two countries in the field of higher education, that is to allow the Indian universities instructors to teach at the colleges of applied sciences for two years as academic visitors.
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