With crude oil imports from Iran continuing to decline, the principal secretary to Prime Minister, Pulok Chatterjee, will hold a meeting on April 15 to discuss the various issues related to India-Iran economic ties.
Sources close to the development indicated that sourcing of oil and gas from Iran will remain the key agenda at the meeting. The government wants to quickly find a solution to the issue and ensure uninterrupted supply of oil from Iran. Sources say the meeting will discuss the issue of sourcing gas
at a concessional price from Iran.
Meanwhile, the country?s largest importer of Iranian crude, MRPL, is set to halt all crude imports from Iran due to insurance companies? refusal to cover refiners due to the Western sanctions. India, the second-largest buyer of Iranian crude, reduced its imports after the US and the European Union imposed sanctions aimed at curbing Tehran?s nuclear ambitions.
Sources said the meeting will also focus on re-insurance of Indian refineries. MRPL has already written a letter to
the petroleum ministry asking for an alternative insurance mechanism.
Ever since the ban on Iranian oil imports by EU nations came into effect in February 2012, Indians oil companies have gradually reduced their dependence on oil from the West Asian country and put in place alternative arrangements. India aims to cut Iranian oil imports by around 15% every year from the current level of 15 million tonne, which itself is down 35% from the level in 2008-09.