The payment problem with Iran has been resolved with operationalisation of a Rupee payment mechanism through UCO Bank.
Disclosing this, the Federation of Indian Export Organisations (FIEO) said on Friday that the Department of Financial Services in the Finance Ministry has asked it to bring all cases where exporters face problem of payment.
The Department has assured to resolve such issues, a FIEO statement said.
Meanwhile the Directorate General of Foreign Trade (DGFT) has agreed to grant all export benefits on such payments (though paid in Indian Rupee) as applicable to payments in free foreign exchange, the FIEO said, adding that necessary notification in this regard is underway.
Mr Rafeeque Ahmed, President, FIEO, said that the payments which have been stuck in the past will be cleared expeditiously.
He said that the positive action by the Government will encourage exporters to aggressively export to Iran and optimise utilisation of Rupee balance in oil import pool.
Mr Ahmed expressed confidence that the business delegation to Iran from March 10-14 will now be able to negotiate new contracts in turn helping in diversifying and expanding Indian exports.