Aramco may invest $4bn in Bengal, set up new port

4 September 2017

The Bengal government is pitching for $4 billion (around Rs 25,000 crore) Saudi investment in oil refinery, downstream and port projects.

A day after senior representatives of Saudi Aramco, the Saudi state-owned oil company, met chief minister Mamata Banerjee for over an hour at Nabanna, sources said the Bengal coast had figured as a potential site for one of two refineries that the company was planning to set up in India.

“We are thinking of opening two refineries in the country — one on the west coast and the other on the east. Maharashtra is our first choice in the west and we have had detailed talks with the government. In the east, West Bengal has certain advantages. It is geographically well-placed and rich in natural resources,” a senior official of Saudi Aramco told TOI.

The officials also wanted to create a port at Tajpur in East Midnapore for easy access to neighbouring countries.

Tajpur has easy access to neighbouring Bangladesh, Myanmar and Sri Lanka, according to industry department officials. The investment will give a huge fillip to the state’s industrial aspirations, the officials believe. “Saudi Aramco has the world’s second-largest crude reserves and second-largest daily production. It has been their practice to set up their own infrastructure when they start operations anywhere in the world. Hence, they want their own port. Though they haven’t taken a final call yet, we have an opportunity to pitch for Tajpur,” an official said.

There is, however, a challenge. The company will require 7,000-8,000 acres in the coastal zone. Given the government’s reluctance to go for acquisitions, providing so much land will prove a tough ask. “We will take a call after Aramco gives its concrete proposal,” the official said. The Saudi Aramco official said the CM had been very positive and had assured the company of all assistance from the government if it invested in the state.

Source-TOI

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