BIG move Modi govt as India inks major deal with Saudi Arabia worth Rs…, trouble for Pakistan due to…

India-Saudi Arabia household: In a chief jolt to Islamabad amid the ongoing threat of an India-Pakistan war, New Delhi is constructing nearer ties with Muslim powers, with Saudi Arabia only in the near past inking a deal to create two oil refineries in India. In accordance with reports, each of the 2 refineries will have an annual capability of spherical 9 million tonnes, and Aramco– Saudi Arabia’s remark-owned oil and pure gas company– may utilize Rs 18,000 crore to sort a 26% equity stake in the joint mission.

The deal came through following the sizzling assembly of High Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman in Jeddah right during the frail’s reliable remark bound to to the oil-rich Kingdom.

In accordance with experts, Saudi Arabia’s decision to create refineries in India, and work with Indian companies has main implications, in particular in the context of Pakistan, because the deal would bolster India’s geopolitical power, rather then boosting the country’s energy security. Saudi Arabia and the rest of the Arab world, issued a stable condemnation of the barbaric Pakistan-backed Pahalgam terror attack.

BPCL, ONGC to partner with Saudi Aramco

In October final year, media reports had mentioned that India’s Bharat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC) were in talks with Saudi’s Aramco to partner in separate refinery projects. The Saudi firm is eyeing a 26 p.c stake in each refinery projects.

As per reports, BPCL is making ready a sage for its refinery-cum-petrochemical manufacturing facility in Andhra Pradesh, which would have an annual capability of 9-12 million tonnes, and would be constructed at a ticket of spherical Rs 95,000 crore. BPCL and its partner would have to make investments Rs 33,000 crore in equity, with Aramco at probability of utilize Rs 9,000 crore for a 26% equity stake in the mission.

A identical take care of ONGC may require Aramco to make investments spherical Rs 18,000 crore, nonetheless the Saudi-owned has build forth the situation that the refinery will win a chief chunk of its impolite oil supply from Aramco. Indian partners have declined this situation.

Citing sources, media reports mentioned the Indian companies may agree to procuring a critical share of Aramco impolite oil if the Riyadh-owned company provides concessions equivalent to reductions on ticket and freight, or a 90-day credit ranking duration. ONGC is providing a 20-49% stake in the mission, nonetheless Aramco needs to restrict its stake to 26% or less.

While the categorical space and constructing ticket have now now not been made up our minds yet, ONGC is alive to on constructing a 9 mtpa or bigger refinery-cum-petrochemical advanced in Uttar Pradesh, reports mentioned, adding that the company is eyeing a land parcel shut to Prayagraj which BPCL had got a decade ago for a now-shelved refinery mission.