India, Oman review economic ties, agree to enhance trade

Union Minister for Commerce and Industry Anand Sharma with the Deputy Prime Minister for the Council of Ministers, Oman, Sayyid Fahad, in Muscat on September 05, 2010.

India and Oman agreed to enhance their economic cooperation and step up bilateral trade at the 6th meeting of the Indo-Oman Joint Commission in Muscat yesterday.

Commerce and Industry Minister Anand Sharma led the Indian team to the meeting while his Omani counterpart Maqbool Ali Sultan led his country's delegation.

An official press release said the two sides reviewed the entire gamut of bilateral economic relations and ways of enhancing trade between the two countries.

Mr Sharma also chaired the Joint Business Council Meeting held at the Oman Chamber of Commerce and Industry (OCCI). The meeting was organised by OCCI and the Federation of Indian Chambers of Commerce & Industry (FICCI). FICCI President Rajan Mittal represented the Indian side at the meeting.

According to the release, both sides felt that two-way trade, which rose to $ 4.5 billion, needed to increase further to reflect the growing business relations between the two countries.

Mr Sharma mentioned the $ 969 million Oman India Fertilizer Company (OMIFCO) at Sur, the acquisition of the Shadeed Iron & Steel plant in the port city of Sohar for $ 464 million by the Jindal Group and the Oman Oil Company's decision to raise its stake to 26% from 4% in the $ 1 billion refinery at Bina in Madhya Pradesh were a few examples of the burgeoning economic cooperation between the two countries.

The Indian Minister also called on the Deputy Prime Minister for the Council of Ministers Sayyid Fahad bin Mahmoud bin Mohammed Al Said and held substantive discussions with Dr. Omar bin Abdul Muniem Al-Zawawi, the Special Adviser to Sultan Qaboos for External Liaison.

Mr Sharma said the Government of India attached high priority to cooperation with Oman in the petroleum, gas and fertiliser sectors. Mr Sayyid Fahad called for greater cooperation in capacity building and information technology.

The Omani side agreed in-principle to invest in India for the revival of a few closed plants of Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation Ltd. (HFCL) and the expansion of Rashtriya Chemicals and Fertilisers (RCF) through investments by the Oman Oil Company.

Both sides agreed to form a senior level Working Group representing the Government of India, RCF and KRIBHCO from the Indian side and Oman Oil Company from the Omani side for initiating early due diligence. It is estimated that these will bring in investments of close to $ 3 billion.

Bharat Petroleum Corporation Limited (BPCL) and Oman Oil Marketing Company agreed to collaborate and jointly study the possibility of setting up a lube blending plant in Oman and marketing products in neighbouring countries.

The release said the India-Oman Joint Investment Fund with a seed capital of $ 100 million, to be increased up-to $1.5 billion,was expected to function as a catalyst to promote and partnership between the private sectors of the two countries and enhance trade and investment between the two countries. Mr Sharma stressed the need for the fund to be operationalised and augmented immediately.

A number of sectors have been identified for investment cooperation such as agriculture, airports, sea ports and railways, hospitals, power including nuclear power, renewable energy including solar and wind energy, mining, oil and gas, education and skill development, tourism, healthcare, infrastructure and chemicals and fertilisers.

The release said both countries agreed to pursue cooperation in field of human resource development, especially skill development in the fields of technology, management and information technology (IT), and small and medium enterprises (SME) sector.

The Omani side expressed its keenness for setting up super-specialty hospitals in India and diagnostic facilities in the form of joint ventures, for which an Omani delegation will visit India shortly. Investments in agro-processing was also discussed, the release added.

NNN