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Nepal fuel crisis: India denies providing petrol on credit

India has denied reports that Indian Oil Corporation (IOC) has agreed to provide the Himalayan nation petroleum products on credit to overcome the ongoing fuel crisis. Utpal Parashar reports.

world Updated: May 07, 2011 01:40 IST
Utpal Parashar

India has denied reports that Indian Oil Corporation (IOC) has agreed to provide the Himalayan nation petroleum products on credit to overcome the ongoing fuel crisis.

Issuing a statement on Friday, the Indian Embassy here clarified that reports appearing in a section of Nepal media about IOC extending credit supply facility worth NRs 3 billion for two months are false.

It also termed news reports that IOC owes Nepal Oil Corporation, which has monopoly over import and supply of petrol products, NRs 14 billion as “baseless”.

“The Embassy would like to categorically state that both these statements are baseless,” the release stated.

Nepal has been reeling under a fuel crisis for the past three weeks dubbed the worst the country has witnessed since 1990. Non-payment of past dues worth over US $ 50 million by NOC to IOC has led the sole supplier of petroleum products cut down supplies sharply leading to the present crisis.

Unable to cope with it, the Nepal government had requested India to provide petrol products on credit for two months.