India will continue to source oil from Iran although the dependence on the West Asian country has decreased, a senior Government official said on Tuesday.

“Energy is one issue that cuts across economic and security matters. The search for energy supplies is part of our foreign policy. Increasingly the aim of foreign policy is to help the national development process. If you are buying you do not say I must have so much, so how much are you going to charge. What kind of negotiation is that? We have to get the best deal for India rather than lay down quotas or lay figures and restrict our own freedom,” the official said.

The official added that in the recent past India had also started sourcing more oil from Iraq.

On the issue of Indian companies finding it difficult to get reinsurances for importing oil from Iran, the official pointed out that there were “one company, may be two companies” that are ready to reinsure the import of oil from Iran.

With Iran coming under sanction for not allowing the international community to inspect its nuclear sites, many countries including India which are dependent on oil imports from there have been facing some problems.

Asked whether Delhi was hopeful that with a new democratically elected Government expected to take office in Pakistan in May, India may finally be granted Most Favoured Nation status, the official said India has been told by the current (Pakistani) Government and its officials that the process is on track to implement the decision.

On Bangladesh the official indicated that implementation of a settlement of the border issue between the two neighbours might be on hand.

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