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Crude oil tankers from Iran allowed to enter India

The government has permitted ship contracted by public sector oil companies to bring Iranian crude oil to India on a case-to-case basis, the ministry of external affairs said on Tuesday.

The government has permitted ship contracted by public sector oil companies to bring Iranian crude oil to India on a case-to-case basis, the ministry of external affairs said on Tuesday.

Such permission would be granted for ships carrying Iranian crude oil to India only on cost, insurance and freight (CIF) basis, the ministry statement added.

Since the ban on Iranian oil imports by European Union states came into effect on the starting of this month, Indians oil companies faced difficulties due to the non-availability of P&I (Protection and Indemnity) club insurance to ships carrying Iranian crude oil.

The government is trying to sort out issues between the national insurance companies and the ship owners regarding the terms of the insurance cover to be provided to Indian ships for carrying Iranian crude oil to India.

MRPL, the country?s largest buyer of Iran crude oil, is facing problem to get crude oil from Iran due to ban on Iranian tankers to enter Indian ports. Earlier, the government allowed refiners to import oil on CIF (cost, insurance and freight) basis, but later CIF was withdrawn.

These sanctions also forced oil companies to gradually reduce their dependency of importing oil from Iran and making alternative arrangements to source oil.

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First published on: 01-08-2012 at 00:26 IST
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