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Railways-for-oil deal with Iraq soon.
Byline: Girish Kuber
: After bartering oil for food, the Indian government plans to trade its railway building expertise in exchange for crude oil.
The Indian Railway, last week signed an MoU with the Iraqi government for 14 rail projects worth Rs 11,000 crore.
The project is subject to approval from the United Nations since Iraq faces UN sanctions.
Iraq has the second largest oil reserves in the world. Last year, Iraq and India had traded oil for wheat, with New Delhi giving 35,000 tons of wheat for $250 million of Iraqi crude oil. "Now the government is planning to obtain Iraqi oil supply in exchange of building railways in that country," sources from the Railway ministry told ET on Wednesday.
There are 14 railway projects that Iraq wants the Indian Railway to execute. The project includes a $250m Skybus system for the city of Baghdad and a railway line between Baghdad and Mashoba.
However, all this needs a nod from the United Nations. "The Indian government is soon expected to move the UN for waiver of sanctions," an ...
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