India and Bangladesh today signed an agreement for the formation of a 50:50 Joint Venture Company (JVC) for LPG business in Bangladesh.
The agreement was signed between the IOC Middle East FZE, Dubai, a wholly-owned subsidiary of Indian Oil Corporation (IOC) and RR Holdings Ltd., Ras Al Khaimah, UAE, the holding company of Beximco LPG of Bangladesh. More from our Dhaka correspondent:
The new Joint venture company set up today takes further the ‘neighbourhood first’ policy of the government of India.
The energy cooperation between India and Bangladesh has made big strides in the recent times.
The new Joint venture is another step in the same direction. The Joint Venture Company will help reduce the cost of imprt of LPG and make it more affordable for the consumers in Bangladesh.
The LPG market in Bangladesh is fast expanding and the new project will draw upon the strengths of the Indian oil and Beximco in their respective areas.
The company plans to diversify into LPG export to the north eastern states of India from Bangladesh which will prove to be a win win situation for both the countries.