A ‘green corridor’ system, for instance, will see exports from India handled digitally in Abu Dhabi and Dubai ‘before they are ready for some other part of the world’, according to India’s Ambassador to the UAE, Sunjay Sudhir.
“Moreover, CEPA has a mechanism to address operational issues, and we are to constitute a joint committee to address implementation issues. And this committee should be meeting within a month to see how we can better use CEPA on both sides,” said Sudhir.
Regarding the potential rupee-dirham trade deal, the official said negotiations are ongoing between the UAE Central Bank and the Reserve Bank of India. “It’s essential for countries to de-risk trade payments, particularly when there are their major trade partners like India and the UAE,” he said. (India has already agreed to settle trade deals in rupees with Malaysia and Sri Lanka.)
The UAE pledged a $75 billion investment in India for clean energy projects, and the two are collaborating on manufacturing solar power equipment. They also signed an MoU for green hydrogen development and an undersea cable connecting India to the UAE. There is also talk of interconnecting their electricity grids.
“We have finalised an MoU, but all I can share at this stage is that it is awaiting cabinet approval in India,” said Sudhir. “As soon as the cabinet gives approval, and the MoU is signed, we should be able to take more concrete steps in exporting renewable power.”
The planned proposal falls under Prime Minister Narendra Modi’s ‘One Sun, One World, One Grid’ initiative.
If the proposed power grid materialises, it will help both nations share renewable energy to enhance production of low-carbon fuels such as hydrogen and ammonia in each other’s country. “It will help both our countries meet targets we have set for ourselves to reduce our carbon footprint,” the Ambassador added.