Indian Oil Corporation (IOC) has finally agreed to supply additional Liquefied Petroleum (LP) gas to Nepal from its Orissa-based Paradip refinery.
NOC Managing Director Gopal Bahadur Khadka and IOC Chairman B Ashok signed an agreement to this effect on behalf of their respective organizations on Tuesday.
A team led by Secretary of Ministry of Supplies (MoS) is currently in India to hold discussion on different issues related to supply of petroleum products and construction of Raxaul-Amlekhgunj petroleum pipeline with Indian government officials.
Uttam Nagila, joint secretary of Ministry of Supplies (MoS), told Republica that an agreement to import additional LP gas from Paradip refinery has been signed. “IOC has agreed to supply LP gas from the refinery within two weeks,” Nagila told Republica, adding: “We believe that cooking gas supply in the market will become normal once we get additional supplies from India.”
NOC had earlier requested IOC to supply 39,000 tons of LP gas per month so that shortage of cooking fuel can be addressed altogether. However, IOC could supply only 27,000 tons per month in the past two months from Barauni, Haldia and Mathura refineries.
Though IOC itself had proposed NOC in April to supply additional 10,000 tons of LP gas from Paradip refinery in April, NOC had cold-shouldered the proposal.
Talking to Republica, Shreedhar Sapkota, secretary of MoS, said that understanding has been reached with IOC to begin construction of Raxaul-Amlekhgunj petroleum pipeline at the earliest.
NOC officials earlier had said that technical engineering survey of the 41-km Raxaul-Amlekhgunj petroleum would begin within June along the proposed Amlekhgunj-Patlaiya-Jitpur-Birgunj-Raxaul route.