27-03-2017

Indian Oil signs MoU with Nepal Oil Corporation

A Memorandum of Understanding for supply of POL products was signed here today between Indian Oil Corporation Limited and Nepal Oil Corporation in the presence of Mr. Dharmendra Pradhan, Hon'ble Minister of State, Ministry of Petroleum and Natural Gas, Government of India, and Mr. Deepak Bohara, Hon'ble Minister for Supplies, Government of Nepal, along with senior officials from MoP&NG, India; Ministry of Supplies of Nepal; IndianOil and NOC. The new supply agreement was inked by Mr. PK Das, Executive Director I/C, IndianOil, and Mr. Gopal Bahadur Khadka, Managing Director, NOC.

Supply of POL and LPG products from IndianOil to Nepal Oil Corp. started in 1974 when the first supply agreement was signed. Thereafter, the agreement was renewed periodically. The supply agreement signed today is for the period April 2017 - March 2022 and will meet NOC's full requirements of all the major POL products, including petrol, diesel, kerosene, aviation turbine fuel & LPG. The new agreement is based on the concept of “Umbrella Agreement” by keeping the provisions of future MoUs / Agreements subsidiary to this. A provision has been kept for collaboration in new fields like Engineering, Projects, Aviation Fuelling, Retail Sales, Petrochemicals, Business Developments & LPG ventures.

The salient features of the new supply agreement are:
- Release of BS-IV grade fuels to Nepal from IndianOil supply points with effect from 1st April 2017 to convert Nepal markets to the green fuel.

- Meeting the major requirements of POL products of Nepal by pipeline after the laying of the Patna-Motihari-Amlekhganj Pipeline. This pipeline will have the flexibility to receive products from IndianOil's Barauni & Haldia refineries.

- NOC may nominate, with prior written advice to IndianOil, any other supply point to uplift POL products.