India has so far not decided to stop importing crude oil from sanctions-hit Iran completely, the Petroleum & Natural Gas Ministry indicated.

Petroleum secretary Vivek Rae said the government was mulling the issue and would soon sort out the troubles faced by Indian refiners.

Speaking on the topic, Rae said, "These are strategic calls to be taken and we will not cut imports completely. We will sort out the problems faced by Indian refiners soon."

The secretary admitted that newly imposed sanction by the American government have made matters more difficult.

Following the sanctions, importing countries have to make payment either in form of exchange of goods or in local currency. Prior to the fresh sanctions, Indian companies were routing 55 per cent their payment for the National Iranian Oil Co via Turkey-based Halk Bank and the remaining through Kolkata's UCO Bank.

Rae said that India now had no other option but to make payment in Indian currency.

Rae also said that India has plans to set up a special fund to provide insurance to refineries as US and European re-insurers have refused to cover Indian refiners that process oil imported from Iran.