TEHRAN: Keen to step up engagement in the hydrocarbon sector with Iran, India has conveyed to the Persian Gulf nation that it was ready to clear nearly $6.5 billion of the dues for oil import from that country at the earliest, provided there was clarity on payment channel.
The message has been conveyed to Iran even as Prime Minister Narendra Modi is likely to visit the oil-rich country later this month. Government sources said there has been a series of discussions at various levels both in Tehran and here and both sides were confident of resolving the issue soon.
“We are working on clearing the dues to Iran and are hopeful that the issue will be resolved soon,” they said. Following lifting of sanctions against it in January under a historic nuclear deal, Iran had terminated a three-year-old system with India of getting paid for half of the oil dues in rupees and has been insisting on being paid in Euros for the oil it sells to Indian refiners.
It has also scrapped free delivery of crude oil to Indian refiners. Officials said though Western sanctions against Iran were lifted, problems persist in banking channels due to which regular transactions were not possible yet. Refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MPRL) owe nearly $6.5 billion in dues to Iran. Since February 2013, Indian refiners like Essar Oil and MRPL paid 45% of their import bill in rupees to UCO Bank account of Iranian oil company.
