28 Mar 2024
Tuesday 18 August 2015 - 10:34
Story Code : 176496

India to pay first batch of Iran debts in days

Indian officials say the country is preparing to clear $6.5 billion of dues it owes to Iran for oil import in tranches.

Indias Finance Secretary Rajiv Mehrishi has been quoted by the media in New Delhi as saying that the first installment could be provided to Iran in a week.

"What is due to them, must be paid to them. It will not be one single bullet of $6.5 billion. It will be (in) tranches. They also don't want as bullet, they also want it in some kind of tranches. So we are working out with Iran," Mehrishi told the Press Trust of India (PTI).

He further added that the payments can be in a combination of US dollar or euro and Indian rupees.

"It will obviously be partly in dollars, partly in rupee. It could be euro also. Partly hard currency, partly rupee. Exact division is yet to be decided, Mehrishi said. "It is being worked out."

Since February 2013, refiners like Mangalore Refinery and Petrochemicals (MRPL) and Essar Oil have been paying 45 per cent of payment due on purchase of crude oil from Iran in rupees through Uco Bank, Kolkata.

The remaining has been accumulating, pending finalization of a payment route and mechanism.

They had last year paid nearly $3 billion in six installments through a limited payment channel following start of nuclear talks between Iran and the P5+1 group of countries the five permanent members of the Security Council plus Germany.

The outstanding has since climbed to over $6.5 billion.

Essar Oil owes $3.34 billion, MRPL ($2.49 billion) and Indian Oil Corp ($581 million) to Iran.

HPCL-Mittal Energy Ltd (HMEL) owes $97 million and Hindustan Petroleum Corp Ltd (HPCL) another $29 million.

Besides, about Rs 17,000 crore was lying in Iranian account with Uco Bank.

By Press TV
https://theiranproject.com/vdccoeqse2bqm08.-ya2.html
Your Name
Your Email Address