India is ready with a back up plan to cope with a halt to supplies of crude from Iran, its oil minister S Jaipal Reddy said on Thursday, adding there will not be any oil shortages due to Iran halting supplies in August.

"No. There will not be any shortage or problem. We have a back-up plan,"  Reddy told Reuters when asked if Asia's third largest oil consumer would face problems as Tehran has decided against supplying oil in August.

The minister declined to give details of the back-up plan or alternative sources to replace Iranian volumes, that account for about 12 percent of India's crude demand.

Iran has upped the ante in an oil payments row with India and halted crude supplies in August, company sources said on Thursday, forcing them to seek shipments from alternative suppliers including top exporter Saudi Arabia.  - Reuters