Riyadh: Prime Minister Narendra Modi’s one-day tour to Saudi Arabia is expected to usher in a new chapter in energy ties between the two countries, as New Delhi has been able to obtain an assurance from Riyadh for the regular supply of crude oil to India.
“I am happy to say that Saudi Aramco is going to invest in the West Coast refinery in India,” Modi said in his plenary address on the opening day of the third edition of the Future Investment Initiative (FII) Tuesday, an annual business conference to promote Saudi Arabia’s mega investment plans. The conference is dubbed ‘Davos in the desert’.
“India has also eased norms in investments in downstream projects. We expect more investments there,” he said, adding that India and Saudi Arabia are looking to boost bilateral ties.
The proposed West Coast refinery project is expected to come up in Raigad district of Maharashtra, and will involve investment from Saudi’s Aramco, UAE’s ADNOC and India’s public sector oil companies. It will be the single largest greenfield refinery in India.
Following his address to the FII, Prime Minister Modi held a bilateral meeting with Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. During the meeting, both sides vowed to take their energy ties to the next level.
Riyadh has committed to participate in one of India’s Strategic Petroleum Reserves (SPRs) in Padur, to ensure steady production and supply of oil.
About 16 per cent of India’s crude imports come from Saudi Arabia, the world’s biggest oil producer. This translates into a volume of 35-40 million tonnes. India is the world’s third largest oil importer.
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Agreement on Strategic Partnership Council signed
Both sides also signed an agreement on establishing a ‘Strategic Partnership Council’. This ‘strategic partnership’ will be a high-level monitoring mechanism led by Modi and the Crown Prince.
Under this broad council, there will be creation of separate tiers on foreign policy and trade.
Both Modi and the Crown Prince discussed all aspects of the relationship ranging from expanding trade and investment ties to combatting terrorism in all its “forms and manifestations”, according to T.S. Tirumurti, secretary (Economic Relations), Ministry of External Affairs.
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