NEW DELHI: Modi’s Gulf nation visit has cleared the way for turning India into a regional oil stockroom and do business center as Abu Dhabi National Oil Company (ADNOC) is all set to park its crude in Indian storage facility.

This is the first time when the UAE is getting ready to invest into an Indian oil project, marking the huge deal between New Delhi’s buyer-seller associations with West Asian oil producers.

The Indian Strategic Petroleum Storage Ltd inked an agreement with ADNOC for using part of storage capacity at Padur near Mangalore, giving conclusiveness to a pact signed during January 2017 when Abu Dhabi’s crown prince of Sheikh Mohamed bin Zayed visited to India as the Republic-Day chief guest.

From that time the two sides have been preparing the final structure of the deal and as well as easier tax norms wanted by ADNOC.

As per the reports ADNOC will park 5,860,000 million barrels, or a little less than a million tonne, of crude at ISPRL’s Mangalore storage facility. ISPRL’s Mangalore storage facility consists of two screened-off areas with a total storage capacity of one and a half million tonne. One compartment has been filled with crude purchased with funds from the Centre.