India and UAE sign four energy sector agreements

India and UAE Sign Four Key Energy Agreements to Boost Strategic Ties

Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan on Monday signed four agreements to expand energy cooperation with an emphasis on enhancing strategic ties.

The four contracts include a long-term LNG supply agreement between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited and another between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL).

Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Limited (NPCIL) have signed a memorandum of understanding for the operation and maintenance of the Barakah nuclear power plant, the Ministry of External Affairs (MEA) said.

The fourth contract is the Abu Dhabi Onshore Block-One Production Concession Agreement between Urja Bharat and ADNOC. An exclusive agreement has been signed between the Gujarat government and Abu Dhabi Development Holding Company PJSC to set up food parks in India.

MEA spokesperson Randhir Jaiswal said Prime Minister Modi and Crown Prince Al Nahyan discussed the multi-faceted relationship between India and the UAE to expand the comprehensive strategic partnership.

“India-UAE relations are making great progress! Prime Minister @NarendraModi today met Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi,” he said on ‘X’.

“The two leaders discussed the India-UAE multilateral relationship and ways to develop a comprehensive strategic partnership into new and emerging areas,” Jaiswal said.

After holding talks with Modi, the visiting leader paid floral tributes at Mahatma Gandhi’s memorial at Rajghat. In another post, Jaiswal said his teachings inspire us as we strengthen our friendship with the UAE.

The Crown Prince arrived here on Sunday.

Modi and Al Nahyan conversed about tackling worldwide issues, such as the circumstances in Gaza.

Over the past several years, relations between India and the UAE have greatly expanded. After Modi’s August 2015 visit to the United Arab Emirates, the two nations’ bilateral ties were raised to a comprehensive strategic partnership.

The two countries signed the Comprehensive Economic Partnership Agreement (CEPA) in February 2022 and the Local Currency Settlement System (LCS) in July 2023 to promote the use of Indian Rupee and AED (United Arab Emirates Dirham) for cross-border transactions.

According to official figures, the two countries are mutual trading partners with bilateral trade worth $85 billion in 2022-23.

UAE is among the top four investors in India in terms of FDI in 2022-23. The nearly 3.5 million strong and vibrant Indian community is the largest expatriate group in the UAE.

While India chairs the group, the UAE is a special invitee to the G20.

India-UAE-France (UFI) trilateral system launched in February 2023. With India’s active support, the UAE joined the SCO as a dialogue partner in May 2023. UAE became a member of BRICS on January 1 with India’s support.

India-UAE defense cooperation has gained new momentum in the past few years. In January 2024, the first India-UAE bilateral military exercise ‘Desert Cyclone’ was held in Rajasthan.