India inks pact with Iran to pay crude bill in rupee

India's state-owned UCO Bank is expected to announce the payment mechanism in the next 10 days

Neha Dasgupta & Mayank Bhardwaj, Reuters
Updated6 Dec 2018
India is Iran’s second biggest buyer of oil after China. Photo: Reuterse
India is Iran’s second biggest buyer of oil after China. Photo: Reuterse

New Delhi: India will import crude oil from Iran using a rupee-based payment mechanism, an industry person involved in discussions told Reuters on Thursday, adding that 50% of those payments will be used for exporting items to Tehran. India’s state-owned UCO Bank is expected to announce the payment mechanism in the next 10 days, the person said.

“An agreement had been signed by the Indian and Iranian government on 2 November 2018 for oil payment in rupees and 50% of those funds had been earmarked for exports,” according to an Indian government document reviewed by Reuters.

Oil payments are being made in rupees only as against earlier arrangements where there was a ratio of 45% rupees and 55% euros, the document said.

Russian and Chinese shipping companies were pitching to facilitate India-Iran trade, the source said.

Under US sanctions, India will be allowed to export farm commodities, food, medicines, and medical devices to Iran. However, items such as petroleum and petrochemical products, automobiles, steel, precious metals and graphite are not allowed to be exported to Tehran.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeindustryenergyIndia inks pact with Iran to pay crude bill in rupee

Most Active Stocks

Bharat Electronics

283.65
10:19 AM | 22 MAY 2024
9.55 (3.48%)

Zee Entertainment Enterprises

151.25
10:28 AM | 22 MAY 2024
3.6 (2.44%)

Coal India

501.60
10:28 AM | 22 MAY 2024
10.85 (2.21%)

GAIL India

200.80
10:25 AM | 22 MAY 2024
-3.4 (-1.67%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

General Insurance Corporation Of India

379.40
10:18 AM | 22 MAY 2024
33.55 (9.7%)

Finolex Cables

1,160.10
10:28 AM | 22 MAY 2024
101.65 (9.6%)

B E M L

4,553.90
10:27 AM | 22 MAY 2024
373.5 (8.93%)

JBM Auto

1,930.10
09:59 AM | 22 MAY 2024
123.05 (6.81%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,995.001,438.00
    Chennai
    75,995.00998.00
    Delhi
    76,589.001,518.00
    Kolkata
    76,515.001,004.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.75/L-0.13
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    HomeMarketsPremiumFor youGet App