The Union Oil Minister Marpadi Veerappa Moily on August 27 said that to reduce the current account deficit (CAD), the Prime Minister Manmohan Singh has sought $25 billion cut in oil import bill. India is renewing imports of the fuel from Iran as unlike imports from other countries. It pays the Persian Gulf nation in rupees. India paid about $170 billion last fiscal for importing oil.
Moily said that import of oil is one of the components responsible for CAD. Prime Minister has told the Oil Minister to save $25 billion in import bill. As of today, the Ministry has pieced together a plan to save $22 billion in import bill, Veerappa Moily said in Delhi. A large part of the plan includes restarting import of oil from Iran.
As US and western sanctions blocked all payment routes, India pays Iran in rupees in a Uco Bank branch in Kolkata.
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