The credit line, to be extended by the country’s lending arm for the export of goods and services, will help in supplying steel rails to Tehran
New Delhi: India’s cabinet on Wednesday raised a credit line to Iran to $450 million (Dh1.6 billion) as New Delhi aims to boost trade ties with Tehran after the lifting of international sanctions. The credit line, to be extended by the country’s lending arm for the export of good and services, will help in supplying steel rails to Tehran. State-run Steel Authority of India Ltd and private firm Jindal Steel and Power Ltd have signed a deal with Iran to supply 250,000 tonnes of steel rails worth Rs17 billion ($255 million) in 2015. But supplies have not begun pending New Delhi’s finalising of the credit line. India’s Exim Bank and a consortium of Iranian banks led by the Central Bank of Iran struck a deal in 2014 for financing exports from India worth 9 billion rupees.
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