India has resumed payments to the National Iranian Oil Company (NIOC) for import of crude oil, using an alternative system, said Petroleum Minister in New Delhi.
“Pending dues of NIOC are now being cleared and as of March 1, 2011, payment of Euro 1.5 billion has been made to the Central Bank of Iran,” S Jaipal Reddy on Thursday told the Lok Sabha (Lower House of Indian Parliament) in a written reply, said an official release issued here.
He said that consequent to the withdrawal of the Asian Clearing Union mechanism (ACU) by the Reserve Bank of India (RBI) with effect from Dec. 22, 2010, all payments to Iran for import of crude oil have to be settled in any permitted currency outside the ACU mechanism.
“To work out the payment modalities, a composite Indian delegation consisting of representatives of different Ministries and organizations visited Iran under the leadership of Additional Secretary, Department of Financial Services, Ministry of Finance during 14th – 17th January 2011. The payments to Iran (NIOC) up to 22.12.2010 were being made through the Asian Clearing Union (ACU) Mechanism,” added Reddy.