The Hindu : Front Page : India, Iran poised for rise in two-way investments

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India, Iran poised for rise in two-way investments

Pranab reaffirms New Delhi’s commitment to
the Iran-Pakistan-India gas pipeline project

The two governments have finalised an agreement on avoidance of double taxation

Tehran: Seeking to give a major push to their relations, India and Iran on Saturday strongly pitched for increased two-way investments in various fields as they finalised the Double Taxation Avoidance Agreement (DTAA) and decided to conclude a pact on promotion and protection of investments at the earliest.

External Affairs Minister Pranab Mukherjee, who met Iranian President Mahmoud Ahmadinejad and Oil Minister Gholam Hossein Nozari, asked Tehran to implement the bilateral agreement of 2005 on supply of LNG as he affirmed New Delhi’s commitment to the proposed $7.4-billion Iran-Pakistan-India gas pipeline project.

Mr. Mukherjee also pitched for greater Indian investment in Iran, including in the petroleum sector, a proposal that found acceptance in Tehran, which said it was undertaking major economic reforms to allow entry of private companies in various areas and Indian firms could explore the possibilities.

“India and Iran have common interests and perceptions. The leaderships of our two countries have, therefore, always unreservedly stood for a broader and multi-dimensional engagement,” he said, while inaugurating the Joint Commission meeting that discussed ways to enhance cooperation in various specific areas of energy, trade and investment, mining and railways.

Noting that India and Iran were developing countries with “obvious synergies,” Mr. Mukherjee said that so far, the energy sector was at the focus of the bilateral economic ties with Tehran emerging as a major supplier of energy resources imperative for driving his country’s growth. “Iran is energy-rich country while India is energy-deficient economy,” he said.

Observing that India’s energy needs would increase in keeping with its projected economic growth, Mr. Mukherjee said: “Both India, as a major consumer and Iran, as a major producer, are natural partners in the energy sector.”

For greater role

He said India had the capacity and capability to play a greater role in both the upstream and downstream sectors of Iranian oil industry. “Both sides should give adequate attention to this opportunity.”

Highlighting the “pivotal” role of the private sector in the economic growth and development of a country, Mr. Mukherjee said it was the responsibility of the governments to create a facilitative environment to encourage trade, investment and exchange of technology.

With this end in view, the two governments have finalised the agreement on avoidance of double taxation and are making efforts to conclude the agreement on promotion and protection of investment at the earliest, Mr. Mukherjee said.

Talking about the Liquefied Natural Gas (LNG) deal concluded in 2005 for supply of five million MTPA of gas to India by Iran, he said bilateral cooperation in this sector would be further strengthened by the implementation by Iran. Tehran had refused to implement the agreement, seeking revision of its price, which was not acceptable to India.

“We also similarly expect that the 20 per cent stake for ONGC Videsh Limited in Yadavaran gas field as part of this agreement would be honoured,” he said.

“These would greatly encourage our companies involved in negotiations in other large projects in oil and gas sector in Iran.” — PTI

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