While the ministry of power has already identified projects, with capacities totaling 9,500 mega watt and with investments of over Rs. 40,000 crore, the petroleum ministry has also held discussions with its oil and gas companies for offering stakes to West Asian investors.

    This exercise, government sources said, would not only increase the foreign direct investment (FDI) inflows from the Gulf countries, which are just 1.59% of the total FDI approvals in India since August 1991, but also help form long-term commitments fro sourcing crude oil and gas by India from these countries.

    The country's economic dependence on West Asian countries can be gauged from the fact that 67% of India's crude oil imports are from these countries. The Prime Minister's Office is, therefore, of the view that stakes should be offered to West Asian investors for supporting infrastructure projects like LNG, refineries and power.

    The ministry of power is ready to offer equity participation of up to 40% in the projects identifies for investors from West Asian countries.

    The projects on offer include the 1,900 mw Kayamkulam power project in Kerala, 2,000 mw project at Pipavav (on imported coal), the 1,600 mw Subansiri and the 3000mw Debang hydel power project of NHPC besides the 1,020 mw Khab hydel power project of Satluj Jal Vidyut Nigam.

    For transmission projects, Power grid has been asked to identify specific projects for West Asian investment. Offering transmission systems associated with the ultra mega power projects is also being explored.

    At present, there is very little direct stake holding by West Asian companies in the country's energy sector. Ras Gas of Qatar has a small equity holding in Petronet LNG's gas terminal at Dahej.

    Besides, NIOC of Iran holds 15.04% in Chennai Petroleum, a subsidiary of Indian Oil Corp. Oman Oil Company has made an investment of Rs 75.5 crore in Bharat Oman Refineries, a joint venture company promoted by BPCL.

    ONGC is engaged in talks with Iraqi oil companies for a long-term crude oil contract for its refinery at MROL. After investing close to Rs 982 crore in acquiring oil producing assets in Syria, ONGC has also offered equity participation to Syrian companies in the refinery expansion for MRPL.

    Participation in refinery projects of IOC and ONGC against long-term crude oil sourcing contracts has also been offered to companies in Saudi Arabia, Qatar, UAE, Yemen, Kuwait and Oman.

    HPCL is in the process of singing a MoU with Kuwait Petroleum Corporation and Total of France for expansion of its Visakg refinery to 15 million tonnes per annum along with a petrochemical projects.