Why in news?
India and UAE has signed five new agreements related to energy sector, railways, manpower and financial services.
What are the agreements signed?
- A MoU between the Indian Consortium (OVL, BPRL & IOCL) and the Abu Dhabi National Oil Company (ADNOC) was signed for the acquisition of a 10% participating interest in the Abu Dhabi’s offshore.
- To cooperate in the field of manpower, India and the UAE signed a MoU that aims to institutionalise the collaborative administration of contractual employment of Indian workers in the Gulf country.
- A MoU for technical cooperation in railways was also signed between the two sides, it aims at cooperation in infrastructure sector especially railways.
- To deepen bilateral cooperation in the field of finance, a MoU between Bombay Stock Exchange and Abu Dhabi Securities Exchange was also signed.
- A MoU between the Government of Jammu and Kashmir and DP World was also signed to establish multi-modal logistics park and hub in Jammu comprising warehouses and specialised storage solutions.
What are the prospects of these agreements?
- The concession on oil will be for 40 years from 2018 to 2057, with 60% of the participating interest will be retained by ADNOC and remaining 30% will be awarded to other international oil companies.
- This is the first Indian Investment in upstream oil sector of UAE, transforming the traditional buyer-seller relationship to a long-term investor relationship.
- Labour related MoUs will end the existing malpractices, combat trafficking and organise collaborative programs for education and awareness of contractual workers.
- Railway related MoU will facilitate development of joint projects, knowledge sharing, joint research, and technology transfer and envisages formation of a Joint Working Group.
- The financial MoU will enhance cooperation between both the countries in financial services industry and facilitate investment in financial markets by investors from both the countries.
Source: The Hindu
