New Delhi: India has made a very important agreement from a strategic point of view with Sri Lanka, which has reached the brink of poverty under the debt of China. Under this, India and Sri Lanka will develop a Trincomalee oil tank farm with mutual cooperation. This agreement is being considered as a big setback for India's enemy China. It is expected that this will strengthen Sri Lanka's economy as well.
Under the agreement, both the countries will revive this oil tank form with mutual cooperation. On Tuesday (January 4, 2022), the Sri Lankan government said that after reviewing three agreements with India, both sides have agreed to jointly develop this project. According to the report, the Sri Lanka cabinet has approved the proposal to allot 24 and 14 oil tanks to the local operators of Ceylon Petroleum Corporation and Indian Oil Corporation respectively. The 61 oil tanks will be developed by Trinco Petroleum Terminal Pvt Ltd. In this, 51 percent stake will be held by Ceylon and 49 percent by Indian Oil. According to Sri Lanka's Energy Minister Uday Gamanpila, this contract between the two countries is for the next 50 years.
The next step in the matter will be to enter into three formal contracts between the two countries. Out of this, two agreements will be signed between Ceylon Petroleum and Indian Oil. The third agreement will be signed between the Sri Lankan government and Indian Oil. It may be mentioned that pm Modi visited Sri Lanka in 2015 when a consensus was reached on the redevelopment of the project.
The agreement was pending since 1987:-
The Trinkomali agreement agreed to by the Gotabaya Rajapaksa Government of Sri Lanka was mentioned about 35 years ago on 29 October 1987 under the then PM Rajiv Gandhi. Letters were also exchanged between the two countries for the development of the project, but the issue was later shelved. How many governments have come and how many PM have been formed in these 35 years, but this matter has not progressed. Now the Modi government is going to work on this project. The Island of Trikonmali is very close to Tamil Nadu. That is why it is also strategically important for India.