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Business / Economy

Nepalese delegation to leave for China to seal commercial deal on fuel import

(Xinhua) Updated: 2015-11-19 15:49

KATHMANDU -- A Nepalese delegation will leave for China on Friday to seal a commercial deal on importing petroleum products from the northern neighbor in a long run, Sushil Bhattarai, Managing Director at state-run Nepal Oil Corporation (NOC), told Xinhua Thursday.

"Two representatives from NOC along with officials from Ministry Commerce and Supplies will leave for China tomorrow. The agreement will be signed within few days," Bhattarai said.

However, the name of the representatives has not been revealed yet.

Nepal has already signed a Memorandum of Understanding (MoU) to import one third of total demand of petroleum products of the country from China breaking the decades long monopoly of Indian Oil Corporation.

Nepal's move comes after its southern neighbor India imposed an unofficial blockade halting the supplies of petroleum products resulting in the crisis since September.

Prior to commercial agreement, the two sides will finalize the pricing, fuel supply mechanism, routes, supply procedures among others.

Meanwhile, Nepalese Minister for Commerce and Supplies Ganesh Man Pun, who returned from weeklong China trip on Tuesday, had informed reporters that China will start supplying fuel right after a week of signing the commercial agreement.

NOC has asked China to supply fuel from Tatopani customs which is easier and shorter than the Rasuwagadhi border point, some 150 km away from the capital.

Officials said Nepal has kept the Tatopani border point, nearest to Tibetan city Lhasa, in the first priority for fuel supply due to better road condition and infrastructures.

Earlier, China had provided a grant assistance of 1000 metric tons of petrol to the Himalayan nation to ease the ongoing fuel crisis.

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