India to save $8.5 bn in Iran oil imports

India to save $8.5 bn in Iran oil imports
Highlights

India plans to save over $ 8.5 billion in foreign exchange this fiscal by increasing crude oil imports from Iran, Oil Minister M Veerappa Moily has told Prime Minister. India, which paid about $ 144.29 billion last fiscal for importing oil, is renewing imports from Iran as unlike imports from other countries it pays the Persian Gulf nation in rupees. Detailing plans to save $ 20 billion in foreign exchange spending, Moily on August 30 wrote to Prime Minister Manmohan Singh saying about 11 million tonnes of crude will be imported from Iran in the remainder of the fiscal.

Oil Minister initiates measures to save around $20 billion in foreign exchange this fiscal

New Delhi (PTI): India plans to save over $ 8.5 billion in foreign exchange this fiscal by increasing crude oil imports from Iran, Oil Minister M Veerappa Moily has told Prime Minister. India, which paid about $ 144.29 billion last fiscal for importing oil, is renewing imports from Iran as unlike imports from other countries it pays the Persian Gulf nation in rupees. Detailing plans to save $ 20 billion in foreign exchange spending, Moily on August 30 wrote to Prime Minister Manmohan Singh saying about 11 million tonnes of crude will be imported from Iran in the remainder of the fiscal.

"About 2 million tonnes crude oil has been imported from Iran so far during the current financial year. An additional import of 11 million tonnes during 2013-14 would result in reduction in forex outflow by $ 8.47 billion (considering the international price of crude oil at $ 105 per barrel)," he wrote.

The plan is in response to Prime Minister's call to the ministry seeking $ 25 billion cut in oil import bill to narrow current account deficit. Moily, who also wrote an almost identical letter to Finance Minister P Chidambaram, said he has "worked out some concrete measures which could result in a saving of around $ 19-20 billion in the current financial year." The biggest component of the plan is restarting import of oil from Iran. As US and western sanctions blocked all payment routes, India pays Iran in rupees in a Uco Bank branch in Kolkata.

Other measures include asking state-owned oil firms to keep crude imports at 2012-13 level of 105.96 million tonnes that will save $ 1.76 billion in foreign exchange. Also, a mega fuel conservation campaign to limit fuel consumption growth to last year's 4.1 per cent will save another $ 2.5 billion, he said.

Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
More Stories


Top