India Pays 2nd Batch of Iran Oil Dues
TEHRAN (Tasnim) – India on Tuesday paid the second installment of $700 million to Iran to clear part of its outstanding oil dues to the Islamic Republic.
This is the second payment by Essar Oil, Mangalore Refinery and Petrochemicals and other Indian refiners this year ahead of easing of Western sanctions against Tehran following the July 14 nuclear deal between Iran and world powers, DNA India reported on Tuesday.
Essar Oil paid $338 million while MRPL remitted $299 million, sources privy to the development said. IOC (India Oil Corp) paid another $60 million while Hindustan Petroleum Corp (HPCL) paid $3 million.
The payments today come on top of $700 million the four refiners had cleared on September 30.
After today's payment, India has cleared more than one-fifth of the $6.5 billion outstanding they owed to Iran.
The remaining $4 billion will be cleared in tranches after payment channels are okayed.
Back on August 18, Indian Finance Secretary Rajiv Mehrishi said his country plans to clear its $6.5 billion debt to Iran for oil imports in tranches.
"What is due to them, must be paid to them. It will not be one single bullet of $6.5 billion. It will be (in) tranches. They also don't want as bullet, they also want it in some kind of tranches. So we are working out with Iran," Mehrishi was quoted by the Press Trust of India (PTI) as saying at the time.
Mehrishi indicated that the payments can be in a combination of US dollar or euro and Indian rupees.
