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Senior government officials are to meet the Iranian Ambassador in Delhi on Wednesday to discuss the $1-million guarantee demanded by Iran for the release of a detained Indian ship.
The main issue was that Iran was asking for financial guarantee without producing any evidence that the ship had caused pollution, an official said.
The oil tanker Desh Shanti, owned by Shipping Corporation of India (SCI), was detained by Iranian naval authorities last week on charges of polluting their waters. SCI has denied the charge. But the vessel, subjected to repeated port control inspections, is detained at the Bandar Abbas port.
Knotty issue
The Indian government has been trying to resolve the issue through diplomatic channels. But now it has turned knotty with Iran seeking compensation.
The ship’s insurers will not provide guarantee or accept the claim without adequate proof that the ship caused pollution.
“The issue is not simple, with Iran facing US and EU sanctions. Even if the Protection and Indemnity (P&I) insurers agree to provide guarantee to the SCI vessel, it cannot furnish it with Iran,” said a shipping company official handling insurance matters.
The sanctions ban the International Group of P&I Clubs, which provide insurance to merchant ships, to extant the cover to voyages to Iran.
Insurance back-up
The ship is insured with Steamship Mutual P&I Club. SCI is unlikely to provide any guarantee without its insurer’s back-up. It would also be difficult for to get a guarantee from any bank or to make payments due to the sanctions.
In any case the payment of compensation did not arise as the ship had not violated any international maritime law, said the official.
The Iranian maritime authority has reportedly stated that the Indian ship should compensate through its P&I cover for the pollution it had caused.
The Wednesday meeting was expected to work out a solution to speed up the release of the vessel, said an official familiar with the development,
The Shipping Secretary, Director General of Shipping and SCI Chairman are among the officials who will be meeting the Iranian Ambassador on Wednesday.
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