Neighbourhood First: IOC subsidiary enters JV for LPG business in Bangladesh

By: |
July 1, 2020 2:06 PM

On Tuesday, IOC Middle East FZE, Dubai, which is a wholly-owned subsidiary of Indian Oil Corporation, and RR Holdings Ltd., Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh, inked an agreement for setting up a 50:50 joint venture for LPG business in Bangladesh.

Neighbourhood First, IOC, global COVID-19 pandemic, india bangladesh relations,LPG supply, RR Holdings Ltd, IOC Middle East FZE, LPG business in Bangladesh, defence newsIt is a major milestone in the India-Bangladesh cooperation. (File photo: PTI)

To woo Bangladesh, despite impediment created by the global COVID-19 pandemic, India is ready to supply LPG at affordable rates to rural Bangladesh. On Tuesday, IOC Middle East FZE, Dubai, which is a wholly-owned subsidiary of Indian Oil Corporation, and RR Holdings Ltd., Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh, inked an agreement for setting up a 50:50 joint venture for LPG business in Bangladesh.

Sharing his comments on this venture, Bangladesh watcher, Gautam Lahiri says, “China has started an all-out exercise to woo Bangladesh by giving duty-free access to its exports. India has swung into action and has signed the LPG extension agreement which will help in giving the LPG in affordable price to the rural population in Bangladesh.”

How will this help?

According to Lahiri, “This will not only boost the rural economy of that country but the presence of India will be easily felt among the people of Bangladesh.”

“India is also constructing a diesel supply pipeline which is expected to be completed very soon. This will reduce the transportation cost of petro products to Bangladesh,” Lahiri added.

What is the agreement about?

It is a major milestone in the India-Bangladesh cooperation. A group company of IndianOil based in Dubai has joined hands with one of Beximco the most important LPG companies in Bangladesh through its holding company in UAE for the LPG business in that country.

This joint venture will help in greater penetration of affordable LPG in that country.

India Bangladesh Relations

In 2019, at the end of talks between Prime Minister Narendra Modi and Prime Minister Sheikh Hasina, seven agreements were inked focusing on connectivity, water sharing and cheaper LPG for the people in the North-Eastern region.

And one of the projects inaugurated in the presence of the two leaders related to India to buy liquefied petroleum gas (LPG) from Bangladesh for Tripura in North East.

It is expected that these ventures between India and Bangladesh are not only going to help the people of both countries but would also help in enhancing and strengthening trade ties between the two sides.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1US closely monitoring India-China border row, does not want it to escalate: Official
2ITBP broke myth that some countries have strong armies: MoS Kishan Reddy aims at China
3Celebrating International Day of Diplomats