Essar and Tata planning major investments in Iran

Essar and Tata planning major investments in Iran

Government officials at the Eighth India-Iran Joint Business Council meeting today in New Delhi discussed important aspects of India's future investments in Iran, including several top Indian steel and oil companies' plans to invest nearly $5 billion in Iran. Among the investment projects, India's major steel companies Essar and Tata are planning to establish steel plants at Bandar Abbas. The reason these companies want to build plants in Iran is to take advantage of cheap and abundant energy resources. Iran also allows Indian companies easier access to European and Central Asian markets through the North-South Transport Corridor and the planned Eastern Corridor to Afghanistan. The steel and mining investment projects are worth $3.3 billion, with agreements almost concluded for $1.8 billion of the proposed investments. India's recently approved agreement to import 7.5 million metric tons of natural gas from Iran, and Iran's recent move to grant three-year multiple-entry visas for Indian businessmen and investors and to liberalize residence permits to facilitate serious business interaction and the forging of joint ventures between Iran and India are evidence of serious future investments in steel, transport, gas and oil sectors.