MILAN MANI SHARMA
KATHMANDU, Feb 26: India has turned down Nepal government’s request to end Indian Oil Corporation’s (IOC’s) monopoly in supplying petroleum products to Nepal. This has closed options for Nepal to induct alternate fuel suppliers for Nepal Oil Corporation (NOC).
“Officially, India is yet to respond to our call to open oil export (to Nepal) to all Indian refineries and oil marketing companies (OMCs). But unofficially, it has already said no,” said a highly placed government source.
However, if Nepal opened fuel imports to the private players, it (India) has said it would allow IOC to export petrol and diesel to them. This means even while promising exports to the private sector, India has said IOC will not be exporting kerosene and liquefied petroleum gas (LPG) to them.
“Kerosene and LPG are exports restricted items in India. Hence, it is not willing to give privilege to the private sector -- something that it has been providing to NOC, its three-decade long trading partner,” said a highly placed source.
Such a response from India has jeopardized government’s plan to allow NOC to source fuel from other Indian petroleum giants as well.
The Essar Group that operates largest private sector refinery and Bharat Petroleum, the public sector entity, of India had recently shown interest to supply fuel to Nepal. Buoyed by their interest, the government had formally requested to India to end the over three-decade long monopoly of IOC in fuel supply to Nepal.
“The plan has received a severe setback,” said the source. That is not all. Officials argued that India’s denial could seriously affect Nepal’s plan to open petroleum imports to the private sector.
“How can we expect Nepali private sector to jump in the trade, particularly of kerosene and gas, if India is not ready to open exports or pledge its logistics support to facilitate imports at port?”
Such doubts surfaced mainly after India, in yet another request of Ministry of Commerce and Supplies, refused to allow a Nepali LPG importer use storage facility and take technical support of Indianoil Petronas Private Limited (IPPL) in Haldiya.
A newly established local company named Chandi Lumbini had sought permission to use the facility and expertise of the IPPL in Haldiya port while importing gas from the third country. The ministry had also requested the Indian government to extend all possible support to it.
“Unfortunately, India’s response is negative,” said the source.
IOC has been supplying fuel to Nepal since 1974, when Nepal and India inked a Petroleum Supply Agreement to start a formal petroleum trade between the two countries.
The agreement designates IOC as the sole exporter of petroleum products to Nepal and NOC as the petroleum import monopolist for Nepal. In case the respective governments wish to change this arrangement, they need to notify each other.
“But given the situation that unfolded of late, it seems mere notification will not help Nepal to move ahead with its liberalization program,” said the source.
Nepal’s petroleum market stands at about Rs 48 billion per annum and NOC projects it to grow to Rs 60 billion in this fiscal year
Read at-source:
No comments:
Post a Comment