NEW DELHI, July 28: India has banned US-sanctioned Iranian ships from entering its waters. a development that is likely to affect crude oil supplies to the country, The Hindu said on Saturday.

“We were to import four tankers, or cargoes of about 90,000 tonnes each, from Iran in July. But we were able to get only one as the cost, insurance and freight (CIF) approval was withdrawn by the government,” the paper quoted Mangalore Refineries and Petrochemicals Limited (MRPL) managing director P.P. Upadhya as saying.

It said that after the European Union’s sanctions came into effect on July 1, the Indian government allowed MRPL and other companies to import crude from Iran in ships arranged by Tehran and on a CIF basis. It was left to Tehran to arrange for ships and insurance. However, permission was revoked within days.

The US imposed sanctions on the National Iranian Tanker Company and its 58 vessels. In 2011-12, MRPL contracted for supply of 7.3 million tonnes of crude from Iran, but imported only 6.2 million tonnes.

India cut imports to win a waiver from the US sanctions. But the waiver for crude imports did not cover shipping, MRPL officials told the paper. Crude imports from Iran are possible only if the state insurers, led by General Insurance Corporation (GIC), provide cover for domestic ships carrying Iranian crude. However, the matter of sovereign guarantee for ships is still pending with the government.

The GIC has agreed to provide domestic ships with $50-million cover for hull and machinery and a similar one for protection and indemnity, but this has been delayed as the company has not got approval from the insurance regulator.