TEHRAN -- Majlis Joint Commission to study the state budget bill for the next Iranian calendar year of 1382 (starting March 21, 2003) on Friday authorized foreign investment in Iran's oil industry.

The commission had authorized the flow of foreign capital for establishing oil refineries in Iran with a production capacity of as much as 300,000 barrels under the build, operate and transfer (BOT) contracts, IRNA reported on Saturday.

The commission's reporter Mohsen Farahani said that the authorization comes in light with Majlis efforts to implement the law on supporting foreign investment in Iran, and to help the government with its programs to tackle unemployment.

Farahani said that the commission had also assigned the Oil Ministry to conclude buyback deals with foreign contractors to launch oil and gas exploration and implementation projects in underdeveloped areas such as Makran, Jazmourian, Sistan-Baluchestan and Tabas.

He said that the commission's license also includes projects to establish hydroelectric, gas, steam, and combined cycle power plants with a production capacity of 12,000 megawatts under BOT contracts.

The commission, Farahani added, further gave the go-ahead to the government to conclude BOT deals with foreign parties to develop urban water and sewage projects, to install 2,400 kilometers of railway and to construct 1,100 kilometers of highway in the country.