New Delhi, Sep 6 (IANS): State-run Oman Oil Company has agreed to invest around $3 billion in the revival of a few closed plants of the Fertilizer Corporation of India and Hindustan Fertilizer Corporation and expansion of the Rashtriya Chemicals and Fertilizers.

The Omani company and the public sector fertilizer firms would soon start the due diligence for the investment. The decision was taken at a meeting of the sixth Indo-Oman Joint Commission in Muscat Sunday, an official statement said here Monday.

Bharat Petroleum Corporation Ltd and Oman Oil Marketing Company have also agreed to collaborate and jointly study the possibility of setting up a lube blending plant in Oman.

Commerce and Industry Minister Anand Sharma discussed with Oman's Deputy Prime Minister Sayyid Fahad bin Mahmoud bin Mohammed Al Said plans to boost bilateral trade and investment.

The two-way trade currently stands at $4.5 billion.

In 2008, the two countries had signed an agreement to increase the capital of the India-Oman Joint Investment Fund to $1.5 billion from $100 million. Sharma said this would boost the flow of private investments in agriculture, oil and gas, education and infrastructure.

Oman has also expressed keenness for setting up super-speciality hospitals in India. Omani officials are likely to visit India shortly to finalise the projects, said the statement.

The economic engagements between the two countries include the $969-million Oman-India Fertilizer Company at Sur and acquisition of the Shadeed Iron and Steel plant in the port city of Sohar at an investment of $464 million.