India is not likely to yield to the US pressure as far as doing business with Tehran is concerned and is exploring options of doing trade in rupee.
An inter-ministerial delegation, which is in Tehran, is deliberating on mechanisms that will protect Indian business from the US sanctions and find ways to make payment for crude oil imports. The delegation, led by a Department of Economic Affairs (DEA) official, is not going to seek waiver from the US, sources in know of the development said.
According to reports coming in, other major buyers of Iranian crude, such as Japan and South Korea, may seek waiver. The new US laws make it tough for the financial institutions to deal with Iran's central cank.
The laws allow waivers to companies in countries that significantly reduce dealings with Iran or at any time when it is either in the US national interest or necessary for energy market stability.
India imports about $12-billion worth of Iranian crude annually. Sources said India would like to find a middle path which will also protect its interests with the US
The Commerce Secretary, Mr Rahul Khullar, told reporters here that the governments of both the countries would work on modalities by taking into account the sanctions, both in terms of importing oil and promoting exports.
Meanwhile, Indian refiners continue to import crude from Iran, as they also seek alternative supplies. Indian refiners can tap Saudi Arabia, Iraq or Latin American countries as alternative sources for crude oil. richam@thehindu.co.in