NEW DELHI: The landmark interim nuclear deal between Iran and permanent members of the UN Security Council apart from Germany and EU, which India described as a significant step, has the potential to once again increase Delhi’s oil imports from Tehran and make the payment process much easier.
India is Iran’s second-biggest buyer of oil annually after China. But last month, India did not import oil from Iran – first time in a decade with Delhi deciding to keep its hydrocarbon shipmen from Tehran within sanctioned limits. But all this could change rapidly once India studies the implications of the interim deal reached in Lausanne on Thursday, hinted official sources. India’s oil imports from Iran are expected to rise if sanctions on Iran are lifted and Tehran decides to export oil to Delhi on current terms, sources indicated. Essar Oil and Mangalore Refinery and Petrochemicals Ltd are expected to import oil from Iran this month.
Tehran had hinted that it would continue to offer crude oil on 90-day credit terms and at a discount if sanctions were lifted, diplomatic sources claimed. Shortly after the deal, US President Barack Obama stated that the international community has agreed to provide relief to Iran from sanctions. Ahead of President Obama’s visit to India last January, there were reports that the Essar Oil, Mangalore Refinery and Petrochemicals Ltd and Indian Oil Corp were suggested to cut their imports from Iran in February and March to keep the shipments with sanctioned limits.
