Lok Sabha Question No. 1129 (UNSTARRED), answered on 2016-03-02
Subject: Indo-Iran Ties
Ministry: EXTERNAL AFFAIRS
Asked by: M. I. SHANAVAS, NALIN KUMAR KATEEL, MUTHAMSETTI SRINIVASA RAO (AVNTHI), DODDAALAHALLI KEMPEGOWDA SURESH, B.N. CHANDRAPPA

## GOVERNMENT OF INDIA

## MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.1129

TO BE ANSWERED ON 02.03.2016

## INDO-IRAN TIES

1129.

SHRI M.I. SHANAVAS:

SHRI NALIN KUMAR KATEEL:

SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

SHRI D.K. SURESH:

SHRI B.N. CHANDRAPPA:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a)     whether  the  Government  has  taken  any  action  to  improve trade relations with Iran in the backdrop of lifting International sanctions;
- (b)     if so, the details thereof;
- (c)     whether  the  Government  has  reactivated  Iranian  accounts existing in various Indian banks and also plan to allow Iranian banks to open Branches/subsidiaries in India;
- (d)      if so, the details thereof; and
- (e)    the  various  steps  taken/proposed  to  be  taken  to  improve bilateral relations with Iran?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS [GEN. (DR) V. K. SINGH (RETD)]

(a) to (e) India welcomed the announcement of lifting of nuclear- related  sanctions  against  Iran  in  January  2016.  External  Affairs Minister,  in  a  letter  to  her  Iranian  counterpart,  stated  that  the milestone  represented  triumph  of  diplomacy  and  signalled  a  new chapter  of  peace,  progress  and  prosperity  for  Iran  and  our  region opening up vast opportunities for our two countries to expand their ongoing  mutually  beneficial  cooperation  in  a  number  of  spheres including energy infrastructure and regional connectivity. Number of

steps in  this  regard  were  also  discussed  during  the  Foreign  Office Consultations led  by  the  Foreign  Secretary  on  the  Indian  side  and Deputy Minister for Asia and Pacific, Ministry of Foreign Affairs on the  Iranian  side  on  4  February  2016  in  New  Delhi.    A  contract between Indian Special Purpose Vehicle and Arya Bander of Iran for development  of  Chahbahar  Port  has  been  finalised.  Government approved  Credit  of  USD  150  million  to  Iran  for  development  of Chahbahar Port. Requisite credit by EXIM Bank for beginning supply of 2.5 lakh tonne of steel rails under contracts negotiated by State Trading  Corporation  (STC)  was  also  approved  in  January  2016. Indian oil companies are in negotiation with their Iranian counterparts for investment in Farzad B upstream project. Negotiations  on  an  Agreement  on  India-Iran-Afghanistan  Trilateral Transit  Corridor  have  made  progress  and  the  next  meeting  of Experts to finalise the clauses will be held in India shortly.

Iranian  banks'  accounts  in  India  will  be  activated  once Reserve  Bank  of  India  reinstates  Iran  under  the  Asian  Clearance Union (ACU) mechanism.  RBI  has  sought the concurrence of Department of Economic Affairs, Ministry of Finance for reinstating Iran  under  the  ACU.  Also,  requests  of  Iranian  banks  regarding reactivating  their  accounts  existing  in  various  Indian  banks  and opening  branches  in  India  are  under  consideration  of  Government/ Reserve Bank of India.

The meeting between Prime Minister and President of Iran Dr Hassan Rouhani in Ufa, Russia on 9 July 2015 on the margins of the SCO Summit provided a roadmap for developing India-Iran bilateral relations  and  consulting  closely  on  regional  issues.  This  meeting was  followed  by  the  visit  of  Minister  of  Foreign  Affairs  of  Iran  in August  2015,  which  built  on  the  momentum  generated  at  Ufa. External Affairs Minister co-chaired Joint Commission Meeting with Minister  of  Economy  and  Finance  of  Iran  on  28  December  2015  in New Delhi. In the Joint Commission Meeting, which was preceded by  meetings  of  Joint  Working  Groups  on  Trade,  Infrastructure  and Energy, several decisions to strengthen bilateral economic cooperation were taken. These decisions pertain to India's involvement in the Chahbahar port development and exploration of natural gas in Farzad B field etc.

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