| Date: |
07-03-2016 |
| Subject: |
Iran central banker visiting India over $6-billion oil dues |
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NEW DELHI: Iran is dispatching its Central Bank Vice Governor Gholamali Kamyab to India this month after the Persian Gulf nation's efforts to get nearly $6 billion of past oil dues from refiners like Essar Oil hit roadblock over differences over foreign exchange rate.
With US lifting sanctions, Iran wants its past oil dues to be cleared. But differences have now cropped up over foreign exchange rate, sources privy to the development said.
Iran sold oil to refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MRPL) in US dollar per barrel. 45 per cent of the oil bill was paid in rupees in a UCO Bank account while the rest 55 per cent was to be cleared whenever banking channels open.
Now with lifting of sanctions, Iran has presented its unpaid bill. But Essar Oil and other refiners want to pay Iran at the exchange rate prevalent at the time of buying crude oil in the last three years, sources said.
Rupee to a US dollar was under 55 in February 2013 when the 45:55 payment system became operational. Rupee to a US dollar is at 67 now.
Ideally, if refiners had kept dollar equivalent to their purchase in separate account over the years they could have readily paid Iran now. But for a barrel of oil they bought in February 2013 at say $80, they would now have to pay Rs 5,360 instead of Rs 4,400 then.
Sources said Iran wants its dollar dues in full without factoring in the exchange rate. Refiners like Essar Oil on the other hand want to pay rupee equivalent of the purchase at current rate.
Iran, they said, wants dollar equivalent of the dues in Euros.
Central Bank of Iran's vice governor Gholamali Kamyab is likely to visit India later this month to discuss payment options, sources said.
Tehran has told India that the three-year old mechanism of paying 45 per cent of oil import bill in rupees and keeping the remaining 55 per cent pending for payment channels to clear, has come to an end.
It will be opening or re-activating euro accounts with Indian banks and would like to have the past money transferred from refiners into these accounts.
The Persian Gulf nation is talking to State Bank of India for the purpose and has also opened an account with IDBI.
Also, it wants settlement with India through the Asian Currency Union (ACU) and has written to the Reserve Bank of India (RBI) in this respect, they said.
National Iranian Oil Company (NIOC) would ask buyers of crude in India to open Letters of Credit (LCs) in favour of Central Bank of Iran with SBI as was the case in past, sources said adding settlement could be done through the ACU and IDBI would be used for the purpose.
Source : economictimes.indiatimes.com
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