Public sector refiner and oil marketing company from India Bharat Petroleum Corporation is planning to sell diesel and petrol to Nepal from its Assam-based Numaligarh refinery.
Currently, only Indian Oil Corporation (IOC) sells fuel to Nepal, according to the agreement between the IOC and NOC.
A team from Numaligarh refinery visited Nepal last week to discuss the modalities after the Indian petroleum ministry gave it a green signal.
Bharat Petroleum Corporation – that is planning to increase the capacity of Numaligarh Refinery to about nine million tonne per annum (mtpa) from three mtpa currently – is aiming at selling up to one million tonne, comprising diesel and petrol, in phases, according to the news reports.
The Numaligarh refinery plans to export products from its terminal in Siliguri, around 100 km from Biratnagar. But in the long run, a pipeline may also be constructed if the commercial deal seems viable.
Bharat Petroleum Corporation owns 61.55 per cent in the Numaligarh Refinery while the Assam government holds 12.35 per cent, whereas Oil India holds the remaining 26 per cent, according to the corporation.