Iran oil payment issue resolved: FIEO | business | Hindustan Times
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Iran oil payment issue resolved: FIEO

business Updated: Mar 03, 2012 00:30 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Exporters body Federation of Indian Export Organisations (FIEO) said on Friday that the long-pending issue of payments with Iran has been resolved, and shipments to that country will now be paid in Indian rupees.

"The payment problem with Iran has been resolved with operationalisation of rupee payment mechanism through UCO Bank," FIEO president Rafeeque Ahmed said here. "Those payments which have been stuck will be cleared expeditiously."

He said "such positive action" by the government would encourage exporters to aggressively export to Iran and optimise utilisation of the rupee balance in oil import pool.

With this, the Indian business delegation that is going to Iran on March 10-14 will be able to negotiate new contracts with their Iranian counterparts.

The department of financial services, Ahmed said, has asked the Fieo to bring up before the government, cases where an exporter is facing payment problem with regard to export to Iran.

The directorate general of foreign trade has also agreed to grant all export benefits to exports for which payment is received in Indian rupee, he said.

The problem with Iran began when the Reserve Bank of India in December 2010 withdrew the mechanism under which payments were made to Iran, in view of international sanctions against that country.