India and Mongolia are likely to sign an agreement for the construction of Mongolia’s first petrochemical refinery that is expected to cut some of its dependence on Russian fuel. Once signed this project would be the largest being undertaken by the government of India under its Lines of Credit programme. The petrochemical refinery-near Sainshand in southern Dornogovi province -- is to be built at an approximate cost of $1.25 billion utilising the $1 billion line of credit announced during Prime Minister Narendra Modi’s visit to Ulan Bator. The decision to use the line of credit offered by India to set up the petrochemical plant was taken by the Mongolian government.
