India and UAE Strengthen Ties with Five Landmark Agreements

India and the United Arab Emirates (UAE) took a significant step forward in their strategic partnership by signing five groundbreaking agreements. These deals, covering crucial areas such as nuclear energy, fossil fuels, and food security, were formalized during a high-level meeting between Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi in New Delhi.

Nuclear Cooperation: Powering the Future

One of the most notable agreements is the Memorandum of Understanding (MoU) in the field of Barakah Nuclear Power Plant Operations and Maintenance. This pact, signed between the Emirates Nuclear Energy Company and the Nuclear Power Corporation of India Limited, is expected to:

• Enhance cooperation in the operation and maintenance of nuclear power plants
• Facilitate the sourcing of nuclear goods and services from India
• Explore mutual investment opportunities
• Foster capacity building in the nuclear energy sector

This collaboration marks a significant milestone in the peaceful use of nuclear technology between the two nations and underscores their commitment to sustainable energy solutions.

Strengthening Energy Security

Long-Term LNG Supply Agreement

In a move to bolster India’s energy security, the Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Limited (IOCL) signed an agreement for the long-term supply of Liquefied Natural Gas (LNG). Key points of this agreement include:

• Supply of 1 million metric tonnes per annum (MMTPA) of LNG
• This is the third such contract signed in just over a year
• Previous agreements include IOCL (1.2 MMTPA) and GAIL (0.5 MMTPA) with ADNOC

These contracts collectively contribute to diversifying India’s LNG sources, thereby enhancing its energy security.

Strategic Petroleum Reserves

An MoU between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL) was also signed, focusing on:

• Exploring ADNOC’s participation in additional crude storage opportunities in India
• Renewing their storage and management agreement on mutually acceptable terms
• Building upon ADNOC’s existing involvement in crude storage at the Mangalore Cavern of ISPRL since 2018

Expanding Oil Exploration

In a historic first, a Production Concession Agreement for Abu Dhabi Onshore Block 1 was signed between Urja Bharat (a joint venture of IOCL and Bharat Petro Resources Ltd) and ADNOC. This agreement:

• Marks the first such concession for any Indian company operating in the UAE
• Entitles Urja Bharat to bring crude oil to India, directly contributing to the country’s energy security

Advancing Food Security

An MoU on food parks development in India was signed between the government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ). Key aspects of this agreement include:

• ADQ’s expression of interest in developing Gundanpara, Bavla, and Ahmedabad as promising sites for the food park project
• Aims to commence the food park project in 2025
• The Gujarat government will facilitate ADQ and AD Ports in obtaining detailed site information and necessary permissions

Strengthening Economic Ties

The signing of these agreements builds upon the existing strong economic partnership between India and the UAE:

• A Comprehensive Economic Partnership Agreement was signed in February 2022
• A Local Currency Settlement system was established in July 2023, promoting the use of Indian rupee and UAE dirham in cross-border transactions

India Middle East Europe Economic Corridor (IMEC)

In addition to the signed agreements, steps were initiated towards operationalizing the IMEC:

• A soft launch of the India-UAE Virtual Trade Corridor (VTC) is planned
• The MAITRI interface to facilitate the VTC will be introduced in Mumbai during the Crown Prince’s visit