(MENAFN) India decided to pay Iran an interest of 1.5 percent on USD6.5 billion that refiners such as Essar Oil and Mangalore Refinery and Petrochemicals Ltd. (MRPL) owe it in oil dues.
The Islamic Republic had sought an interest rate of Libor-plus 75 basis points on the USD6.5 billion Indian refiners owe it in past oil fees, to make up for the foreign exchange losses.
India took this step to prove its willingness and keenness to revive the hampered relationship with the Persian Gulf Republic, as it seeks to establish many aspiring schemes in the oil/gas industry.
Iran sold oil to refiners such as Essar Oil and MRPL in US dollar per barrel, and nearly 45pct of the oil bill was paid in rupees in a UCO Bank account while the rest 55pct was to be cleared whenever banking channels open.
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