On 30 June, India and Bangladesh signed an agreement for formation of 50:50 Joint Venture Company (JVC) of Liquefied Petroleum Gas (LPG) business in Bangladesh.
Agreement signed by:-
IOC Middle East FZE, Dubai, a wholly-owned subsidiary of Indian Oil Corporation and RR Holdings Ltd., Ras Al Khaimah, UAE, the holding company of Beximco LPG, Bangladesh.
Joint Venture Company:-
- The JVC will begin functioning by acquiring Beximco’s existing LPG assets.
- It aims to set up a large LPG terminal at a deep-water port in Bangladesh to facilitate receipts of LPG, leading to reduction in cost of imports.
- It helps to reduce the cost of import of LPG for customers of Bangladesh.
- The company is to diversify into LPG export to northeastern states of India from Bangladesh.
- The JVC takes the ‘neighborhood first’ policy of Indian Government.
- The JV intends LPG export to north east India through pipeline between the nations.
i) The joint venture is another big stride between the India Bangladesh energy cooperation.
ii) The project draws strength of the Indian Oil and Beximco as the LPG market in Bangladesh is growing rapidly.
About Ministry of Petroleum & Natural Gas:
Minister: Dharmendra Pradhan
About Indian Oil Corporation:
Headquarters: New Delhi
Chairman: Shrikant Madhav Vaidya
Headquarters: Dhaka, Bangladesh
Chief Executive Officer:- Mrinal Roy