Indian Ambassador to Tehran Saurabh Kumar announced that his country will invest in the development of the first phase of Farzad-B gas field in the Persian Gulf that was discovered by Indias ONGC Videsh, the overseas arm of the Indias state-owned Oil and Natural Gas Corporation.

"Iran ranks second in the world in terms of gas reserves and we will soon invest in exploration of Farzad-B gas field," Kumar said on Saturday, addressing Iran-India Trade Conference in Tehran.

The Indian ambassador pointed to Indias oil debts to Iran, and said, "The Indian government intends to pay back its $6.5 million debt to Iran as soon as the banking system allows us to do so."

Kumar, meantime, referred to a contract signed between Iran and India to equip the first phase of Chabahar port through Indias investment, and said, "India will accept the responsibility for operationalizing Chabahar port for the next 10 years."

The Indian ambassador also said that setting up the North-South Corridor and launching a transit route between Iran, Afghanistan and India are among other issues which will help to the development of transit lines.

In a relevant development in early April, the Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said New Delhi is planning to invest some $20 billion for development of energy and petrochemical projects in Irans Chabahar Port.

Speaking to reporters following a meeting with Iranian Minister of Petroleum Bijan Zangeneh in Tehran, Pradhan said Iran-India relationships in energy sector is no longer limited to oil imports from Iran.

"India is prepared to develop Chabahar Port," he said.

"Irans cash is being kept at Indian banks and will be freed once new banking channels open up," the Indian official said.

Pradhan visited Tehran heading a delegation of major private sector representatives from oil, gas, and energy fields. His visit was the first by an Indian minister following removal of sanctions as India wants more oil imports and shipments of natural gas from Iran.

The Federation of Indian Chambers of Commerce and Industry (FICCI) in a statement said representative of major oil and energy firms are accompanying the Indian minister to Tehran.

Under pressure from the United States, the OVL-led consortium delayed and ultimately relinquished development of Farzad-B offshore natural gas block. New Delhi also withdrew from Iran-Pakistan-India pipeline project slated to bring 11.3 bcm meters of Iranian natural gas per year to India.

A proposal on the undersea pipeline to carry natural gas from Iran to India is also under study by an Indian firm.

Last December, managing director of the National Iranian Gas Export Company (NIGEC) said Tehran and New Delhi were seriously negotiating construction of a trans Oman Sea-Indian Ocean pipeline to transfer gas to the energy hungry India.

Gas-rich Iran which holds the largest reservoirs of 34 tcm or 18 percent of the global resources has also entered into contracts for export of natural gas to neighboring Turkey, Pakistan, Iraq, and UAE.