The Indian government has asked the country�s refiners to prepare $1.4 billion for payment to Iran in an outstanding oil debt, media reports from New Delhi say.

Indian refiners owe Iran $6.5 in total for the oil bought from the Middle Eastern country which plans to repatriate its money frozen in foreign accounts after last month�s conclusion of nuclear talks.

India�s Finance Secretary Rajiv Mehrishi has ordered refiners to prepare two installments of $700 million for payment to Iran, unnamed government officials were quoted as saying on Thursday.

Mehrishi visited Tehran last month along with representatives of the Reserve Bank of India to discuss repayment of the debt.

The dues have�accumulated in bank accounts amid US-led sanctions which ban financial transactions with Iran.

Iran�s nuclear agreement with the West prompted the Indian government to order refiners to stock up on dollar and euro reserves in overseas accounts to avoid draining the rupee.

India is reportedly keen to stagger the repayment instead of doing it in one go.

The Thursday report said the Indian Finance Ministry was seeking clearance from the US Treasury�Department to go ahead with the repayment.

Indian refiners have already paid about $3 billion through a limited payment channel which was opened following an interim nuclear deal between Iran and the West in November 2013.

India pays 55% of its debts to Iran for oil purchases in euros and the rest in rupees.

Payments in euro through Turkey�s Halkbank were halted in February 2013 under US pressures, leading to the current debt. Forty-five percent of the dues has been cleared in rupees through UCO Bank in Kolkata.

New Delhi is anxious to clear the debt as it eyes new business opportunities in Iran amid planned removal of sanctions on the Islamic Republic.

India, the second client of the Iranian oil after China, also seeks to raise crude imports, though at the favorable terms which Tehran granted it during years of sanctions.

By Press TV