5 pact signed between India and Abu Dhabi in Energy and Food Park

Utkarsh Classes Last Updated 11-09-2024

5 pact signed between India and Abu Dhabi in Energy and Food Park

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India and Abu Dhabi Emirate signed five memorandums of understanding (Mou)/agreements to strengthen cooperation in fossil fuels, the nuclear sector, and food parks. These agreements were signed during the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan's official visit to India.

The Crown Prince was on his first official visit to India on September 9 and 10, 2024. He visited New Delhi on September 9 to meet Indian political leaders and Mumbai on September 10 to boost economic and business ties.

Abu Dhabi Emirates is one of the seven emirates of the United Arab Emirates (UAE). It comprises about three-fourths of the UAE's land area and is the centre of the UAE oil and gas industry.

Five Agreements on Energy and Food Park

The Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan met Prime Minister Narendra Modi in New Delhi on 9 September 2024. During the meeting between the two leaders, five MoUs/agreements were signed between India and Abu Dhabi.

Long-term supply of LNG

Abu Dhabi National Oil Company (ADNOC) will supply one million metric tonnes per annum (MMTPA) of LNG(liquefied natural gas) to the Indian Oil Corporation Limited.
This is the third agreement between an Indian company and ADNOC in the past year.
IOCL and GAIL had previously signed long-term agreements with ADNOC to supply 1.2 MMTPA and 0.5 MMTPA of LNG, respectively.

MoU between ADNOC and India Strategic Petroleum Reserve Limited

Currently, ADNOC has leased 0.75 million tonnes of oil storage capacity in the ISPRL's Mangalore oil cavern storage facility.
Under the new MoU, ADNOC will explore further opportunities in oil storage with ISPRL.

MoU on Nuclear Cooperation

MoU was signed between Nuclear Power Corporation of India Limited (NNPCIL) and Emirates Nuclear Energy Corporation (ENEC).
The UAE has a 5.6 GW nuclear power plant at Barakah, Abu Dhabi.
This MoU will facilitate cooperation in operating and maintaining nuclear power plants, sourcing nuclear goods and services from India, exploring mutual investment opportunities, and capacity building.

Concession on Abu Dhabi Onshore Block 1

An MoU was signed between the Indian company Urja Bharat and ADNOC for the Abu Dhabi Onshore Block 1 oil field.
Under the MoU, the Indian company will be able to bring oil from Abu Dhabi Onshore Block 1 to India.
This is the first time an Indian company will be allowed to bring crude oil from Abu Dhabi oil fields.
Urja Bharat is a joint venture of IOCL and Petro Bharat Resources Limited. The company operates oil blocks in the Abu Dhabi Onshore Block 1 oil fields.

MoU on Food Park

The Government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ) signed an MoU to develop food parks in Gundanpara, Bavla, and Ahmedabad.
Abu Dhabi will invest in these food parks.
The project is expected to start in the second quarter of 2025.

Crown Prince's Visit to Mumbai

During his visit to Mumbai on 10th September 2024, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan participated in the India-UAE Business Forum meeting.

He also initiated work on the India -UAE virtual trade corridor and MAITRI interface to facilitate the virtual trade corridor.
The virtual trade corridor facility will enable online customs clearance for goods to be traded between the two countries.
It will increase the ease of trading between the two countries by cutting the red tape and will also help reduce the cost of exports and imports.
The virtual trade corridor will complement the Comprehensive Economic Partnership Agreement (CEPA), which became effective on 1 May 2022.
CEPA aims to promote free trade in goods and services between India and UAE and set a target of $100 billion in non-oil trade between the two countries by 2030.

India UAE Relationships

India has a very close political, economic and defence relationship with the UAE.

Around 3.5 million Indian expatriates live in the UAE, the largest expatriate population.
In 2023-24, the UAE was India's third-largest trading partner after China and the United States of America.
The total trade between the two countries in 2023-24 was $ 83.6 billion.
To promote trade between the two countries, India and UAE signed a Local Currency Settlement System in July 2023 to promote the use of the Indian Rupee and United Arab Emirates Dirham for bilateral trade transactions.
In defence, the first India-UAE bilateral army exercise, 'Desert Cyclone,' was held in Rajasthan in January 2024.