During the meeting the two sides discussed economic bilateral relations specifically the great potentials for India investment in Iran’s petrochemical sector.
NPC’s deputy said that Iran’s shores of Oman Sea are more attractive in comparison to other places in the country for Indian investors mainly due to being closer to Indian territory and subsequently lower transport costs.
Payvandi said that fixing the price of gas as feedstock is very important for facilitating India investment in Iran’s petrochemical projects, adding, “Unfortunately we lack a long term price formula for feedstock”, which is sold at 13 cents at the time being for delivery to domestic petrochemical plants.
According to Payvandi, crude oil, LPG and urea are the main items of bilateral trade between the two countries.
He added that India is one the biggest consumers of fertilizers in the world willing to make investments in the area.
Meanwhile, Indian ambassador to Iran said that lacking a specified formula for pricing feedstock in the long term is one of the main obstacles on the way of Indian investors’ presence in Iran’s petrochemical projects.
Elsewhere in his remarks Srivastava said Indian investors prefer investment in Chabahar free zone due to its proximity to India.
Expressing willingness to boost investment in petrochemical projects including urea projects, he said striking a final deal for investment in petrochemical sector could result in big changes in bilateral economic relations.
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