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Mangalore Refinery and Petrochemicals Ltd (MRPL.NS), the biggest Indian buyer of Iranian oil, will make a rupee payment on Monday, a company official said.
India is Iran's second-largest oil buyer, but has struggled since the end of 2010 to find ways to pay for the oil amid Western sanctions that blocked arrangements in dollars and Asian currencies.
After months of discussions, Tehran and New Delhi agreed in January for part-payment in rupees. The Indian currency is not internationally convertible, but Iran can use the revenues to buy products from Delhi.