Nepal govt mulls airlifting fuel to ease crisis

Bs_logoImage
Press Trust of India Kathmandu
Last Updated : Oct 08 2015 | 4:22 PM IST
Nepal is mulling airlifting fuel either from Bangladesh or Malaysia and may build a petroleum storage plant near its border with China as the fuel crisis deepened due to continued blockade of land trade points with India amid protests over the new Constitution.
Nepal Oil Corporation (NOC) has been tasked to prepare alternative plans for fuel import by the Commerce Ministry following the blockade, The Kathmandu Post reported.
In its proposal, the state-owned enterprise has drawn short- and long-term plans for fuel import.
The NOC has planned to import fuel either from Bangladesh or Malaysia as short term solution.
"The NOC meeting on Wednesday has considered air-lifting fuel as an option for now. However, we are yet to reach to any conclusion," said an NOC source told the paper.
In the long term plan, the NOC has recommended for importing fuel from China and sending a technical team there for a feasibility study.
The corporation has also suggested the government of constructing a petroleum storage plant in the Nepal-China border area.
In the proposal, the NOC has sought government's permission to import petroleum products without bidding process.
The Commerce Ministry had written to the NOC last week to work on possibility of importing petroleum products through alternative means after the Indian Oil Corporation (IOC) "unilaterally started restriction on fuel supply to Nepal", the paper said.
According to Shiva Prasad Tripathi, under secretary at the ministry, they have asked the NOC for a detailed feasibility report, including costs for petroleum products and transportation.
With IOC -- the sole supplier of petroleum products to Nepal for over 40 years -- denying adequate fuel supply after "Indian government's unofficial blockade", the government has been forced to look for alternatives, the paper said.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 08 2015 | 4:22 PM IST