India plans oil import from Iran to cut import bill, CAD

New Delhi, Aug 28 : The oil ministry has worked out a plan to save USD 22 billion in the oil import bill from Iran thus helping reduce the current account deficit (CAD), Petroleum Minister M. Veerappa Moily has said.

"Oil (imports) is one of the components responsible for CAD. The prime minister has told us to save USD 25 billion in the import bill. As of today, we have pieced together a plan to save USD 22 billion in import bill," Moily said.

He said the savings would be around one percent of the GDP.

Moily was talking to reporters Tuesday at an event to present a cheque for Rs.5 lakh to the widow of Arjuna awardee sportsman late Makhan Singh.

Senior oil ministry sources told IANS that the plan includes renewing imports from sanctions-hit Iran, which India pays in rupees thereby saving foreign exchange and reducing the CAD.

Officials calculate that importing, for instance, 10 million tonnes oil from Iran means saving USD 10 billion in foreign exchange outgo. During the last fiscal, India imported 13.1 million tonnes of oil from Iran, down from 18.11 million tonnes of 2011-12.

After not buying any oil from Iran in first four months of the current fiscal, imports were resumed this month with state-run Mangalore Refinery and Petrochemicals getting the first tanker-load.

In view of the current volatility of the rupee against the dollar, India is discussing with Iraq the possibility of trade in local currencies, which would help insulate India's oil imports from Iraq also.

--IANS (Posted on 28-08-2013)

business-india-news headlines

TCS, Twitter launch app to track Indian Elections

India's software market grew at 10pc in 2013: Research

Anand Mahindra, Banmali Agrawala, Ellen Lord named USIBC directors

Sigvaris appoints NovoMed as distributor in India

AGP launches talent division

Hotel Sahara Star honoured with award

eBay, CAIT partner to benefit Indian traders

Wipro ups IT revenue forecast for first quarter

Germany's SCHOTT cleared of anti-competition charges

Wipro net up 41 percent in Q4

Sensex up 352 points; IT, bank stocks gain

100 companies to take part in India Show in Hong Kong

Quick Links: Goa | Munnar | Pondicherry | Free Yearly Horoscope '2014


Your e-mail:

Your Full Name:

Type verification image:
verification image, type it in the box


Back to Top