Weeks after India stopped oil imports from Iran, the Modi government is keen to resume supply from the Middle Eastern country and is looking at ways to make payments in Indian rupee to get around US sanctions, two government sources told “The Print”.
“The government is not keen on this (ban). It is keen to resume imports, though the quantum will be limited,” said a senior government official who didn’t wish to be identified.
The official said Iran’s Pasargad Bank, which got the Reserve Bank of India’s nod to open a branch in Mumbai, may be used to make payments for the oil supply.
“Payments can be deposited in the Iranian bank and then Iranian authorities can decide how to utilize the money,” the official said.
With the government looking to make payments in rupee, the official said, “these talks have been held earlier too but got stalled due to elections. They will be revived and this will be one of the first focus areas of the government.”
Once a mechanism has been put in place, India will also have to resolve the issue of insurance for the shipment of crude.
MA/PR