Oman Oil Company has agreed to invest in the Indian fertilizer sector to help in the revival of a few closed plants of Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation Ltd. (HFCL) and in the expansion of Rashtriya Chemicals and Fertilizers (RCF). An agreement to this effect was reached at the 6th Indo-Oman Joint Commission Meeting held in Muscat on Sunday. The Indian delegation was lead by Minister of Commerce & Industry Anand Sharma.
Both countries are planning to set up a senior-level working group with representatives of RCF, Krishak Bharati Cooperative Ltd (KRIBHCO), the Indian government and the Oman Oil Company to kick off due diligence process at the earliest.
The Joint Commission also explored ways to expand the existing capacity of the urea project of the Oman India Fertilizer Company (OMIFCO) from the current 16.5 lakh tonnes per year to 25 lakh tonnes.
Other developments in the bilateral trade talks include a feasibility study for setting up a lube blending plant in Oman by BPCL and Oman Oil Marketing Company for marketing in the neighboring countries.
Oman has evinced keen interest in setting up super-specialty hospitals and diagnostic facilities in India as joint ventures. An Omani delegation would visit India at the earliest to take this forward. Oman is also interested in investing in agro processing, especially in SEZs.
Mr. Sharma emphasized that Indian government is giving top priority to its bilateral cooperation with Oman in petroleum, gas and fertilizer sectors. The bilateral trade between the two countries reached $4.5 billion last year, with the total bilateral investment touching $7.5 billion. Mr. Sharma said that Oman, with its strategic location and existing FTAs with several countries including the USA, offers huge opportunities for Indian companies.
The minister also stressed on immediately operationalizing India-Oman Joint Investment Fund and the need to augment the fund capital. The fund started in November 2008 with a capital of $100 million may be increased to $1.5 billion.
