Date:14/05/2006 URL: http://www.thehindu.com/2006/05/14/stories/2006051402861300.htm

Business

Myanmar will sell gas to India

Special Correspondent

Talks on to conclude agreement with India and China

NEW DELHI: Myanmar will sell natural gas from its offshore fields to India through a land route bypassing Bangladesh. This was stated here on Saturday by the Myanmar Ambassador to India, U. Kyi Thein. He said his country had enough gas to sell to both China and India.

Addressing a meeting organised by the Confederation of Indian Industry (CII), he said negotiations were under way to conclude an agreement with both countries. He said the gas would come to India through a land route by linking the Kaladan river to Mizoram.

He was responding to a question from an official of the ONGC Videsh Limited (OVL) regarding export of gas to India. OVL and GAIL have a 30 per cent stake in the A-1 offshore field being operated by Daewoo of South Korea.

Mr. Thein said developing a transit trade zone between India, Myanmar and China was one of the top priorities of his government. Only rules and regulations for this zone had to be formulated. He invited Indian investors to Myanmar even while noting that bilateral trade needed to be intensified to achieve the $1 billion target. He suggested that India could invest in the proposed new industrial zone in Yangon.

Bilateral trade between India and Myanmar stood at $557.68 million in 2005-06, 24 per cent higher than the previous year. He said Myanmar was importing fertilizer, cement, and machinery from India and sought investments from Indian companies in the pharmaceutical sector. Besides, he suggested that trade in traditional items like teak and timber needed to be discussed.

Stating that Indian industry was keen to expand its trade and investment relations with Myanmar, Rajshree Sugars and Chemicals Chairperson, Rajshree Pathy, said efforts must be made to develop better connectivity as well as to include more goods and services in trading arrangements.