Mongolia's first oil refinery, Mongol Oil Refinery, is set to be completed with Indian assistance by 2025, which will help Mongolia meet 70% of its demand for energy domestically. Mongolia is currently entirely dependent on Russia for its energy imports, making this a strategic move. India has built this refinery with a $1.2 billion Indian soft loan. This refinery project is under full swing and consists of four packages. The first package will be completed by the end of this year. Mongolian coking coal is rich in copper, gold, uranium, and rare earth elements, and Mongolia hopes to attract Indian investment in its mining and metals, with plans to start shipping coking coal to India by 2024. India has already shown interest in exploring these opportunities.
The two countries are expected to establish regular direct flights to facilitate these exchanges. As soon as the direct flights are in place, it will be easier for business people to connect with each other. The strategic partnership between India and Mongolia covers the defense sector, where cooperation is developing well, and can also cover the infrastructure construction. The two countries have also discussed renewable energy, and Mongolia believes that solar, wind, and hydroelectricity are of interest.
There are several other areas of cooperation that are under discussion, such as agriculture, education, and medical cooperation. Mongolia believes that tourism can also be a very good part of their cooperation with India. There are a lot of Mongolians who see India as the land of the Buddha, making it a perfect destination for religious tourism. Indian expertise in cultivation can also help Mongolia grow many varieties of crops.
Overall, this strategic partnership between India and Mongolia is aimed at developing and broadening cooperation not only in the region but also in the international arena. Both countries believe that there is enormous potential for cooperation in various sectors and are taking steps to explore these opportunities.
