"Shortly there will be some part payments. Government is working out modalities and the quantum," IOC Director (Finance) A K Sharma said here today.
RBI will help create payment channels to clear the past dues. "We will make dollar payments to RBI which will transmit it further," he said. "We are waiting for instructions to make payments."
The Reserve Bank had previously facilitated payment of oil import bill to Iran.
"We do not know yet how much instalment will be paid but our share I believe should not be more than USD 60-70 million," he said.
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Since February 2013, Indian refiners like Essar Oil and Mangalore Refinery and Petrochemicals (MRPL) have been paying 45 per cent of payment due on purchase of crude oil from Iran in rupees through Uco Bank, Kolkata.
The remaining has been accumulating, pending finalisation of a payment mechanism. They had last year paid nearly USD 3 billion in six instalments through a limited payment channel following start of nuclear talks between the West and Iran. The outstanding has since climbed to over USD 6.5 billion. Essar Oil owes USD 3.34 billion, MRPL USD 2.49 billion and IOC USD 581 million to Iran.
Lifting of sanctions would open up banking channels and Tehran is likely to seek past oil dues. India is keen that the repayment of dues that have accumulated since February 2013, be done in staggered manner so as to avoid a run on the rupee.
The official said RBI will detail out the banking channels as well as payment schedule with its Iranian counterpart.
Under US pressure, New Delhi has restricted import of Iranian oil at 11 million tonnes in past two fiscals. But with easing of sanctions, it will look to increase imports provided Tehran continues to extend the fiscal terms.