India ‘ready to pay’ $700mn Iran oil dues

India says it is ready to pay a second trench of outstanding oil dues to Iran on the due date, stressing that it does not expect the payment to affect the currency market in New Delhi.  

"We have already cleared $700 million. Remaining $700 million has already been purchased and it will be paid on due date," India’s Reserve Bank Deputy Governor H R Khan has been quoted by the media as saying.

"As of now $1.4 billion has been cleared, $700 paid and $700 acquired. Its acquired, so there will be no impact in the market," he said.

This will the second payment since Iran reached a historic nuclear breakthrough with the US and other western powers in Vienna back in July.

According to sources, the second tranche is scheduled to be paid on October 12.

Essar Oil, Mangalore Refinery and Petrochemicals Ltd, Indian Oil Corp and Hindustan Petroleum Corp had on September 30 paid the first tranche of $700 million to clear a chunk of the $6.5 billion they owe to Iran for past purchases, the New Delhi-based Business Standard reported.

The refiners deposited rupee equivalent of $700 million in the Kolkata-based UCO Bank. UCO Bank purchased dollars for onward transmission to Iran.

The remaining $4 billion will be cleared in tranches after payment channels are approved.

The dues to Iran on crude oil that refiners buy have accumulated as western sanctions blocked payment routes since 2013.

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