<div>Ruling out any "emergency or urgency" in getting back $6.5 billion oil import dues from India, Iran has proposed that a part of this corpus can be invested in Indian projects there - assuaging concerns that an immediate payment outgo might hit India's forex reserves.</div><div> </div><div>Hopeful that a "settlement" can be reached on how to clear these dues, Iran has also proposed delegation-level visits and discussions to iron out the issues in this regard.</div><div> </div><div>The assurance by Iranian Ambassador to India, Gholamreza Ansari, assumes significance as there were concerns that India might have to make immediate payments to clear these dues after lifting of the Western sanctions on Iran. The dues have been pending largely because of curbs on the banking and payment channels connecting Iran.</div><div> </div><div>As per the estimates, more than half of the crude oil bill has remained uncleared in the past two years and has grown to more than $6.5 billion (over Rs 41,000 crore).</div><div> </div><div>"We are neither in emergency or urgent situation. It depends on discussions between the two sides. We should exchange delegations between the two countries and discuss arrangements which they want to do business with each other," Ansari told PTI in an interview in New Delhi.</div><div> </div><div>"Anyway, it will take a long time between Iran and India (to settle the dues) because we are good partners and may be part of this money can go to different projects, different purposes," he said.</div><div> </div><div><strong>Delegation To Visit Iran</strong></div><div>India's Finance Secretary Rajiv Mehrishi will lead a delegation of officials from Reserve Bank of India, state-run UCO Bank and oil companies from July 25-26, to Iran to discuss how to pay its oil import dues, three sources with direct knowledge of the matter said, according to Reuters.</div><div> </div><div>The Iranian ambassador did not give the exact figure of the payments to be made by India and only said it was a "substantial" amount.</div><div> </div><div>"In future...we will have some sort of settlement on what we want to do with the dues... We should find mechanism to settle it. How we want to use it, sell it or transfer it. It can be discussed between the two sides," the envoy further said, indicating that there were many investment opportunities in Iran and part of the dues could be used there.</div><div> </div><div>India has maintained a trade relation with Iran despite the sanctions, especially in terms of crude oil imports.</div><div> </div><div>As per the industry estimates, India has been Iran's second biggest oil customer after China.</div><div> </div><div>Ansari's remarks have come amid concerns in India that after an agreement between Iran and western countries on Tehran's contentious nuclear program resulting in lifting of sanctions, it would be required to make an immediate payment in US dollars, thereby hitting the country's forex reserve severely.</div><div> </div><div>Till about 6-7 years ago, Iran accounted for 15-17 per cent of the total Indian oil imports and was the second biggest supplier to India. However, Iran's share in the Indian oil imports has now more than halved from that level and it was seventh largest supplier in 2014.</div><div> </div><div>Still, India is estimated to have imported 42 per cent more Iranian oil in 2014 after sanctions began to ease. The imports had dipped sharply in 2013 as a clampdown on insurers hit the shipments in a big way.</div><div> </div><div><strong>Oil Importers</strong></div><div>Iranian oil has been imported by private as well as public sector refiners in India.</div><div> </div><div>Essar Oil owes $3.34 billion, Mangalore Refinery and Petrochemicals Ltd $2.49 billion, followed by Indian Oil Corp, which has to pay $581 million to Iran, said one of the sources in the Reuters report.</div><div> </div><div>HPCL-Mittal Energy Ltd (HMEL) owes $97 million and Hindustan Petroleum Corp has to pay $29 million, this source said.</div><div> </div><div>"About 170 billion rupees ($2.67 billion) are lying in Iran's account with UCO Bank," said a second source.</div><div> </div><div>This source also said ONGC Videsh, the overseas investment arm of the country's biggest explorer Oil and Natural Gas Corp also planned to visit Tehran in the coming days to discuss development rights of the giant Farzad B gas field.</div><div> </div><div>(Agencies)</div>
