India-funded refinery in Mongolia set for 2026 commissioning, despite Covid-19 delays: Ambassador

India-Mongolia refinery project: Mongolia's ambassor to India, Dambajav Ganbold, has confirmed that India-assisted greenfield oil refinery project in South Gobi is on course to be operational by 2026. However, Ganbold acknowledged minor setbacks from Indian side in supplying products for refinery's construction.

"Of course, re are some delays from Indian side in delivering products, but overall, project is progressing well," Ganbold stated, emphasising significance of project for bilateral relations.

With a $1.2 billion line of credit announced by India during Prime Minister Narendra Modi's 2015 visit to Mongolia, refinery's development faced a 1.5-year setback due to COVID-19 pandemic.

" work on refinery project is going well. Because of COVID, it has been delayed by one and a half years. We believe that it will be operational by 2026," Ganbold affirmed.

refinery's primary objective is to reduce Mongolia's dependency on Russian oil imports. Once completed, it will have a production capacity of 30,000 barrels per day or 1.5 million tonnes annually, meeting nation's demand for gasoline, diesel, aviation fuel, and liquefied petroleum gas.

Mongolia anticipates a significant visit by Indian Prime Minister in 2025, coinciding with 70th anniversary of diplomatic ties between two nations.

"We expect our President to visit India in second half of this year, and we will celebrate 70 years of diplomatic relations in 2025. refore, we hope Prime Minister Modi will visit Mongolia to commemorate this milestone and 10th anniversary of his first trip," ambassor said.

Ganbold, accompanied by Union Ministers Kiren Rijiju and Meenakshi Lekhi, recently unveiled song "Duur," marking first musical collaboration between India and Mongolia. song, featuring renowned Indian singer Mohit Chauhan and Mongolian artist Baataraj Erdenetsogt, symbolises strengning cultural ties between two nations.

"I believe this is a great fusion and a promising start," said ambassor. "We believe Dragon Year will bring us closer. Indeed, sky's limit." He also underscored potential for deepening economic cooperation between India and Mongolia, particularly in tourism, agriculture, and mineral sector.

"Indian businesses can come to Mongolia for minerals, especially rare earth elements crucial for telephones," he noted.

Echoing similar sentiments about strengning bonds beyond official channels, Minister of Earth Sciences Kiren Rijiju highlighted spiritual connection between India and Mongolia.

"Diplomatic relations are limited to formalities, and true friendship comes from informal events, like music, entertainment, and or cultural and social activities," Rijiju emphasised.

(With PTI inputs.)