Indian Oil to supply fuel to Nepal for the next five years

Indian Oil Corp has agreed to supply refined products to Nepal for the next five years to meet all the fuel needs of the landlocked Himalayan nation, officials said on Monday.

India has supplied all Nepal's fuel needs since 1974 and is keen to maintain close trading ties with its neighbour in South Asia, an area where regional rival China has sought to expand its influence.

Indian Oil Corp, the nation's biggest refiner, would supply 1.3 million tonnes a year of refined fuels to Nepal, the company's chairman B. Ashok told a news conference.

As well as refined products, India was discussing plans