Allah's Energy Marriage - Saudi Arabia and India
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Written by John Daly
Saturday, 07 January 2012 14:54
The only question is, what took so long?
Saudi Arabia, OPECs leading oil producer and rising BRIC superstar India are deepening their energy ties.
India is seeking massive foreign investment of nearly $1 trillion over the next 5-7 years.
Where is such largesse to come from?
Well, on 5 January, at the at the 9th India-Saudi Arabia Joint Commission meeting in New Delhi, Finance Minister Pranab Mukherjee proposed establishing a $ 750 million fund to be set up in cooperation with Saudi Arabia to develop joint of infrastructure, exploration and production of hydrocarbons with Saudi Arabia.
Mukherjee told his audience that the investment fund, "to be jointly set up by the Public Investment Fund, Saudi Arabia, and a counterpart Indian agency, needs to be given high priority as it is mutually beneficial."
As an indication of the high priority India sets on the investment fund, it represents 75 percent of the foreign investment that India is seeking.