Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Wednesday participated in a commissioning ceremony of infrastructure facilities constructed to support the proposed 1.5 MMT oil refinery project in Mongolia.
Mongolia Prime Minister Ukhnaagiin Khurelsukh, six Cabinet Ministers of Mongolia and Governor of Dornogovi Province, T. Enkhtuvshin were also present at the ceremony.
This will pave the way for the development of the refinery project being supported by India under a line of credit of USD 1.236 billion.
Speaking at the occasion, Pradhan said, "The age-old ties between India and Mongolia was further strengthened by the historic visit of Prime Minister Narendra Modi in 2015 and further cemented by the recent visit of President of Mongolia, Khaltmaagiin Battulga in September this year to India. This important event will pave the way to open a new chapter in our bilateral trade and investment relations."
"India greatly values its close and friendly relations with Mongolia. We are also 'spiritual neighbours' connected by our shared Buddhist heritage. The construction of the 1.5 MMT oil refinery project with Indian assistance is a shining example of our friendship," he added.
The Union Minister said he was happy to share that on Mongolia's request, India announced an additional USD 236 million Line of Credit.
"The project will boost Mongolia's long-term energy security, economic development and will lead to the development of ancillary industries related to refinery and pipeline operations," Pradhan said.
He further said, "Mining sector, which contributes to more than one-fifth of GDP of Mongolia, is an attractive area with good potential for joint exploration and collaboration in coking coal, copper, rare earth metals and gold for mutual benefit."
Pradhan also held a meeting with Foreign Minister of Mongolia, Damdin Tsogtbaatar and discussed further strengthening bilateral cooperation in energy and minerals sectors, and prospects for enhancing trade volume with Mongolia.
The Union Minister also held discussions on building energy bridges and realising the full potential of bilateral and trade relations with the Mongolian Prime Minister while en route to Sainshand.
Earlier, Pradhan met with Nandinjargal Ganbold, State Secretary, Ministry of Mining and Heavy Industry and senior Representative of Foreign Ministry of Mongolia upon his arrival in Ulaanbaatar.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)