File photo: Union Road Transport and Highways Minister Nitin Gadkari.
To cut down on a huge Rs 80,000-crore subsidy on urea, India plans to set up a urea plant at the strategic Chabahar port complex in Iran, Union Road Transport and Highways Minister Nitin Gadkari said on Wednesday.
"We are trying to procure gas at a very economical rate from Iran. In 2013, they had offered it at the rate of 82 cents, less than a dollar. We make urea from naphtha. We are trying to set up a urea plant in Iran," the minister said.
India has pledged to invest about $85 million in developing the strategic port located off Iran's south-eastern coast, which would provide India a sea-land access route to Afghanistan bypassing Pakistan.
"Ministries of Chemical & Fertiliser and Petroleum are working on it. Once it is set up, there will not be the need for a huge Rs 80,000-crore subsidy on urea and prices will come down by 50 per cent," he said.
Mr Gadkari had visited Tehran in May and both the nations had inked a pact to develop Chabahar port.
Iran's Foreign Minister Mohammad Javad Zarif had called on Gadkari last month.
"Iran's Foreign Minister had called on me. Prime Minister Narendra Modi also met their President. We are working on the plan," Mr Gadkari said.
Last month, the minister had said Iran has given "very good offers" to India to develop integrated Chabahar port, which has a special economic zone (SEZ). Soon, ministries concerned will deliberate on the issue as well as how to take forward the port development in phases.
Once the port is developed, it will provide a big boost to Indian industries as "the distance between Chabahar to Mundra, Kandla is less than Delhi and Mumbai", the minister said.
"This will give a major boost to our imports and exports as Chabahar port has an SEZ.
Discussions are on for concluding the MoU agreements between India and Iran, which include possibility of India taking over the development and operation of phase II of Chabahar port.