No immediate need for local reinsurance fund for refiners: Vivek Rae

Indian delegation to visit Iran to discuss payment mechanism

Government does not see an immediate need for a local reinsurance fund for refiners, the oil secretary said, after some trade sanctions with Iran were eased following a deal between Tehran and six world powers to curb the Islamic Republic's nuclear programme.

Vivek Rae, however, said that India will continue its efforts towards forming a local reinsurance fund.

"We are not giving it (reinsurance fund) a pause. Interministerial consultations are going on," Rae said on Wednesday.

He also said that Indian delegation will shortly visit Iran to discuss the oil payment mechanism, and will include representatives from the oil ministry, oil companies, refiners and the finance ministry.

Iran and six world powers reached a deal on Sunday to curb Tehran's nuclear programme in exchange for limited relief from sanctions imposed by the US and European Union (EU) that have slashed Tehran's oil exports.

India may look at higher Iranian crude imports in the next fiscal year, depending on the easing of economic sanctions following the deal, Rae said.

India, currently Iran's second-largest buyer of crude, remains focussed on importing 220,000 bpd (barrels per day) Iranian oil in 2013/14, the oil secretary said.