- India is proposing to set up a urea plant at Chabahar port of Iran with an investment of 1 lakh crores .
- As sanctions against Iran are easing by US and countries India has taken up this investment proposal and negotiating with Iran government.
- Iran, in principle, has agreed to supply natural gas at $2.95 per mmBtu rate but India is negotiating to get gas at $1.5 per mmBtu rate.
- India is importing natural gas at more than double the rate what Iran is offering and imports from Qatar in long term costs four times.
- India is already committed to invest 85000 crores for the development south east coasts of Iran which in turn provide a sea-land route to Afghanistan bypassing Pakistan
- If the plant is successfully implemented India can save Rs. 80000 crores of subsidy on urea by avoiding imports of fertilizers to the tune of 8 to 9 million tons and prices of urea drastically reduced by 50%.
- The plant will be established in a special economic zone with good offers from Iran.