Qatar to invest in Indian energy, fertiliser projects

Qatar may invest $5 billion in energy and fertiliser projects in India as part of New Delhi’s efforts to use surplus funds from the energy-rich Gulf region to shore up slowing economic pace. Prime Minister Manmohan Singh, on his way back from the three-day maiden visit to the region, said he discussed with the Qatari leadership the modalities of setting up the $5 billion fund dedicated for investments in India. "We discussed the modalities of Qatar investing about $5 billion in India. In the next 2 or 3 months, we will work out modalities (and) identify projects in the area of energy, power, fertiliser and related activities," he said. The discussions over the next couple of months would enable the Government of Qatar to decide where it wants these funds to be invested in. Discussions on the Qatar Investment Fund followed India and Oman signing an agreement on November 8 to set up a $100 million joint investment fund for financing projects in telecom, infrastructure, utilities, health and urban infrastructure. The India-Oman Joint Investment Fund, with an equal contribution from each side, would eventually go up to $1.5 billion, the Prime Minister said. From Qatar, India is keen to source a minimum of 2.5 million tonnes of additional liquefied natural gas (LNG) and buying fertilisers on a long-term contract. "We also discussed the possibilities (of Qatar) supplying fertilisers (to India through) either investments in fertiliser plants in India or expanding production fertilizer plants in Qatar with assured buyback in India. And it was agreed the two countries will explore possibilities," he said.