India’s strategic investment in Iran

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.

Source: ET