Indian Union Minister Nitin Gadkari on Sunday said Iran has offered natural gas supply at $2.95 for a urea plant being set up by India at Chabahar port, but that negotiations were on to lower the rate.
Gadkari said India wants the supply at $1.5 per mmBtu rate, while Iran has offered it at $2.95.
“Now we are negotiating. The Prime Minister has set up a panel under my leadership to negotiate with Iran on lowering the rate for supplying gas. If they offer to supply gas at $1.5 per mmBtu rate, we will promise them Rs 1 lakh crore,” he said.
Reports of all ministries concerned on developing Chabahar would be received in two or three days, after which he plans to visit that country for the talks to lower the rate, he said.
“In next two to three days, various ministries will give their reports (to develop Chabar port). After that we plan to visit Iran and meet government officials there,” he said in an interaction with students of IIMB at the inauguration of ‘Vista 2015’.
With US and other western nations easing up on sanctions against Iran, India has been in talks with the Gulf nation to set up a gas-based urea plant at Chabahar and also develop a gas discovery made by ONGCBSE.
Gadkari pointed out that India imports about eight to nine million tonnes of urea and is negotiating for a price of $1.5 per mmBtu.If successful, it would see a steep decline in the country’s Rs 80,000 crore urea subsidy, he said.
