Indian Oil’s subsidiary signs Joint Venture Agreement with RR Holdings to expand LPG business in Bangladesh
open view news desk
NEW DELHI, JULY 1: Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan witnessed on Tuesday the signing of a Joint Venture Agreement (JVA) between IOC Middle East FZE,asubsidiary of IndianOil based in Dubai and RR Holdings Ltd. of Beximco Group, in the presence of H.E Salman Fazlur Rahman, Advisor to Hon. PM of Bangladesh, H.E Nasrul Hamid, State Minister for Power, Energy & Mineral Resources, Bangladesh. Through this Joint Venture, IOCL together with Beximco plans to further expand its downstream business in Bangladesh and other countries.
Shri Pradhan, while speaking on the occasion, talked about the long standing relationship between India and Bangladesh which are joined by history, culture, and shared sacrifice.Speaking about role of energy sector in India-Bangladesh relationship, he said, “I am happy to note that energy cooperation between our two countries has made considerable progress during the last few years. This is part of Hon’ble Prime Minister Shri NarendraModiji’s vision to build an “Energy Bridge” with Bangladesh as a part of our “Neighbourhood First” policy. The recent official visit of Hon’ble Prime Minister of Bangladesh to New Delhi in October 2019 further strengthened the engagement and opened new vistas of co-operation.”
Speaking about the Joint Venture Agreement, he said that this event marks yet another step towards expanding bilateral energy cooperation with Bangladesh and expressed confidence that the experience of IndianOil as a pioneer in implementing Pradhan Mantri UjjwalaYojana towards enhancing rural penetration of LPG as a clean cooking fuel in India, would help in promoting the use of LPG in Bangladesh. This joint venture in Bangladesh would be a catalyst of socio-economic change through increase in access to clean cooking fuel in Bangladesh, he further added.
H.E Salman Fazlur Rahman, Advisor to Hon. PM Bangladesh said: “The JVA should serve as a testament to the remarkable investment potential of Bangladesh. At a time when the entire world is grappling with the severe economic consequences of the COVID 19 pandemic, this investment also reflects the resilient and enduring friendship between Bangladesh and India.”
H.E Nasrul Hamid, State Minister for Power, Energy & Mineral Resources, Bangladesh said, “As Bangladesh’s middle class is rising with higher purchasing power, the LPG sector has seen a remarkable growth over the years and is set to grow further in the coming years. As such, a partnership and investment at this scale between two experienced and major players has every potential to be a true game changer in the industry.”
Mr. Sanjiv Singh, Chairman, IndianOil, and Mr.Shayan F Rahman, Chairman, RR Holdings Ltd. also spoke on the occasion.