The visit by Swaraj to the oil-rich country comes nearly two weeks after Prime Minister Narendra Modi travelled to Saudi Arabia, another influential country which considers Iran its rival.
Iran is an important country for India for its energy security as well as to get access to oil and gas-rich Central Asian nations and Swaraj's visit to Tehran is seen as a balancing act following Modi's trip to Riyadh during which both the countries had signed a number of pacts.
From Iran, Swaraj will leave for a two-day trip to Moscow to attend the annual Foreign Ministers' meeting of RIC (Russia, India and China). On the sidelines of RIC, Swaraj is expected to meet her Chinese counterpart Wang Yi during which she is likely to raise the issue of China blocking India's bid to ban Jaish-e-Mohammad (JeM) chief Masood Azhar by the UN.
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The External Affairs Minister will also call on Iranian President Hassan Rouhani.
Oil Minister Dharmendra Pradhan had paid a two-day visit to Tehran from April 9 during which he discussed with his Iranian counterpart the repayment of nearly USD 6.5 billion that Indian refiners owe to Iran.
During Swaraj's visit, sources said, the two sides will
also explore ways for cooperation in areas of banking and review of implementation of the Chabahar port project in which India is a key partner.
The two Ministers are also likely to deliberate on bilateral cooperation in combating terrorism, situation in Afghanistan and in Syria besides other regional issues.
New Delhi is looking to increase engagement with the sanction-free Iran by raising oil imports and possible shipments of natural gas. It also wants rights to develop Farzad-B gas field in the Persian Gulf discovered by OVL.
Sources, however, said a deal for the field was not signed during Pradhan's visit as Iranian Parliament, Majlis, is yet to approve the new Iran Petroleum Contract (IPC) under which the Farzad-B field is to be given to the OVL-led consortium.
But after the lifting of sanctions, India is making a renewed pitch for rights to develop 12.8 trillion cubic feet of gas reserves OVL had found in 2008.
Pradhan also conveyed to the Iranian side that both countries must expand the basket of oil and gas trade.
He had also expressed India's interest in importing LPG from Iran and said companies from both sides could discuss setting up an extraction plant in Chabahar, if required.
In a related development, Iran has ended free shipping of crude oil to India and has terminated a three-year-old system of getting paid for half of the oil dues in rupees.
Iran is now insisting on being paid in Euros for the oil it sells to Indian refiners. It also wants refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MPRL) to clear nearly USD 6.5 billion of past dues in Euros, according to officials.