India to Pay Iran $700 Million Tranche for Oil Dues on Wednesday

Last month, the US Treasury approved the payment of $1.4 billion out of India\'s $6.5 billion outstanding oil payments to Iran.

Published: 28th September 2015 09:14 PM  |   Last Updated: 28th September 2015 09:14 PM   |  A+A-

By IANS

NEW DELHI: India on Wednesday will pay Iran $700 million towards part settlement of its oil dues, which will be the first payment following Iran's landmark nuclear deal with world powers in July paved the way for easing sanctions against the country.

A senior source told IANS here on Monday that Indian refiners will be making $700 million payment in rupees equivalent to to the Kolkata branch of state-run UCO Bank on Wednesday for transmitting to the Reserve Bank of India, which will make arrangements for its onward remittance to Iran.

Last month, the US Treasury approved the payment of $1.4 billion out of India's $6.5 billion outstanding oil payments to Iran.

While Mangalore Refinery and Petrochemicals will pay $300 million in dues and Essar Oil will clear $300 million, Hindustan Petroleum Corp and HPCL-Mittal Energy will be the other refiners which will clear part of their outstanding on Wednesday, the source added.

Iran has asked India to pay, within the next two months, the dues on account of oil supplies that have accumulated since 2013 with sanctions on the country blocking payment routes.

Iranian Foreign Minister Javad Zarif said here last month that Iran's central bank and government officials are working with their Indian counterparts on the technicalities of the settlement of India's oil import dues.

Since February 2013, Indian state-run and private refiners have paid around 45 percent of the payment due in rupees, through the Kolkata branch of the state-run UCO Bank.

The balance has been accumulating, pending finalisation of a payment route and mechanism.

Iran was until 2006 India's second-largest supplier of crude oil, but dropped to number seven by the end of 2013-14.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp