Union Cabinet of India approved Proposal by Oman to hike the Gas Price
International Current Affairs 2012. The Union Cabinet on 28 April 2012 approved the proposal by Oman to hike the gas price for an Indian fertilizer plant in the Gulf nation
The Union Cabinet of India on 28 April 2012 approved the proposal by Oman to hike the gas price for an Indian fertilizer plant in the Gulf nation to 1.5 per million dollar metric British thermal unit (mmBtu), a move that will ensure uninterrupted supply of urea to the Indian market.
The proposal was moved by the Fertilizer Ministry as it required Cabinet's approval for a change in the agreement between the two countries.
Oman, as per a contrct signed between India and Oman in 2005, supplies gas to the Indian fertilizer plant Oman India Fertilizer Company (OMIFCO). Oman, according to the contract, was to provide gas to the Indian plant at 0.77 dollar per mmBtu for 15 years beginning 2005. The gulf nation, however, in the midway decided to increase gas rates to 3 dollar per mmBtu from 1 January 2012 giving global price hike as the reason.
Oman India Fertilizer Company (OMIFCO)
Oman India Fertilizer Company (OMIFCO), a joint venture of Oman's state-owned Oman Oil Co (OCC) and Indian co-operative firms KRIBHCO and IFFCO, produces about 2 million tonnes of urea a year at Sur for exports to India. IFFCO and KRIBHCO hold 25 per cent stake each in OMIFCO, while the balance is with Oman Oil Company.