Following the removal of economic sanctions against Iran, India's Ministry of Steel will encourage local steel mills to invest in the Persian Gulf nation, a ministry official said on Tuesday, January 19.
The ministry official said that the Iranian government through diplomatic channels has sought Indian investments to the tune of $7-8 billion in various infrastructure sectors and heavy industries. In September last year, the ministry held talks with Indian private and public sector steel producers to catalyze their investments in Iran and to brief the companies on opportunities in Iran after economic sanctions were lifted by western countries, the official said.
The official said that steel companies are keen on investing in steel mills in Iran but ask for the Indian government's facilitation in securing raw material security in Iran. The Ministry of Steel will shortly convene another meeting with Indian steel companies for an update on changed economic and market opportunities in Iran and also brief them on Iran's recent assurance to offer dedicated raw material resources and land to attract Indian investments in the steel sector.
Although still at an early stage, Indian steelmaker Steel Authority of India Limited (SAIL) could be the first to revive its investment plans in Iran for the establishment of a 2 million mt per year steel mill at the Iranian port town of Bandar Abbas, entailing an investment of around $1.5 billion.