As per the business plan, the JVC will begin functioning by acquiring Beximco’s existing LPG assets, according to a statement issued by Beximco on Tuesday.
The joint venture aims to set up a large LPG terminal at a deep-water port in Bangladesh, which will facilitate receipts of LPG, leading to a reduction in the costs of imports.
Indian Petroleum and Natural Gas Minister Dharmendra Pradhan said the agreement is a major milestone in the annals of India-Bangladesh cooperation.
Salman F Rahman, private industry and investment adviser to the prime minister of Bangladesh, said: “The JVC should serve as a testament to the remarkable investment potential of Bangladesh under the leadership of Hon’ble Prime Minister Sheikh Hasina. At a time when the entire world is grappling with the severe economic consequences of the COVID 19 pandemic, this investment also reflects the resilient and enduring friendship between Bangladesh and India.”
Nasrul Hamid, state minister for power, energy and mineral resources, also spoke at the deal signing event.
“The Bangladesh government led by Hon’ble Prime Minister Sheikh Hasina has placed extreme importance on meeting energy demands for Bangladesh to become a developed country by 2041 as per the Vision 2041. The JV between Beximco LPG and Indian Oil Corporation aligns with our goals and priorities," he said.
“As Bangladesh’s middle class is rising with higher purchasing power, the LPG sector has seen an exponential boom over the years and is set to grow further in the coming years. As such, a partnership and investment at this scale between two experienced and major players has every potential to be a true game changer in the industry.”
Indian Oil Chairman Sanjiv Singh said that Indian Oil started with lubricants marketing in Bangladesh in 1999 and joined hands with a formidable partner in Bangladesh.
He mentioned that the LPG market in Bangladesh saw a five-fold growth in the past five years and would grow at a CAGR of 12-13%. The JVC will draw strength from the core competencies of Indian Oil and the local expertise of Beximco.