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Iran-India energy ties may take off

If the P5+1 and Iran agree on a nuclear accord, India’s energy sector stands to benefit.
An employee from the electricity board works on newly installed overhead power cables ahead of the "Kumbh Mela", or Pitcher Festival, as the sun sets in the northern Indian city of Allahabad December 7, 2012. REUTERS/Jitendra Prakash (INDIA - Tags: ENERGY BUSINESS EMPLOYMENT TPX IMAGES OF THE DAY) - RTR3BBCN
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Iranian Foreign Minister Mohammad Javad Zarif traveled to New Delhi recently to revive ties with India and unravel issues that have constrained Indo-Iranian relationships. Zarif noted on Feb. 28, "The two countries are intent on minimizing wrongdoings and overcoming interferences." His two-day visit covered various regional and international issues, including developments in Afghanistan, combating extremism and, above all, increasing economic ties and crude oil exports to India.

Following the Geneva interim deal on Nov. 24, 2013, and the partial ease of sanctions against Iran, India’s oil secretary, Vivek Rae, announced that India is ready to pay $1.5 billion to Iran for its oil imports. According to Iranian officials, India owes Tehran nearly $5.3 billion for its oil imports. Under the Geneva agreement, the P5+1 agreed to provide Iran some sanctions relief, including access to $4.2 billion of its frozen oil revenue. The funds are going to be paid in eight transfers, beginning with an already transferred $550 million installment by Japan on Feb. 1, 2014.

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