Ending Indian monopoly, Nepal signs deal with China to import fuel

Nepal and China signed an agreement on Wednesday for supply of petroleum products to the Himalayan nation -- ending four decades of Indian monopoly.

Updated on: Oct 29, 2015, 17:54:10 IST

Hindustan Times | By Utpal Parashar, Kathmandu

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Nepal and China signed an agreement on Wednesday for supply of petroleum products to the Himalayan nation -- ending four decades of Indian monopoly.

Nepalese oil tankers and commercial trucks stand stranded near a gate that marks the Nepalese border with India, in Birgunj. The fuel-starved Himalyan nation has turned to China for its gasoline needs, after India restricted its supplies due to the political protests in Kathmandu against the new Constitution. (AP Photo)

Nepal is facing severe crisis of petroleum products since over a month due to Madhesi protesters opposed to the new constitution blocking border points with India, which has affected entry of tankers from the southern neighbour.

A memorandum of understanding (MoU) was signed at Beijing between Nepal Oil Corporation and state-owned China National United Oil Corporation for supply of petroleum products from China to Nepal.

The MoU was signed by managing director of NOC Gopal Bahadur Khadka and vice-president of CNUOC Zhang Tong, in the presence of senior Nepali and Chinese officials.

“A separate contract was also signed for the expeditious delivery of the 1,000 metric tonne petroleum grant assistance provided by the government of China to Nepal as a goodwill gesture,” said a press release issued by the Nepali embassy in Beijing.

Till date, state-owned Indian Oil Corporation was the sole supplier of petroleum products to Nepal. But with China stepping in to ease the fuel crisis, India would no longer have sole control over supply of fuel.

ABOUT THE AUTHOR
Utpal Parashar
A seasoned senior journalist, I have nearly three decades of experience across print, digital, and online platforms, covering political transitions, insurgencies, environmental issues, and development stories in India and Nepal. I am skilled in breaking news, leading editorial teams and launch of newspaper editions. I am adept at leveraging digital trends and social media to expand global reach, with a strong ethical foundation and a reputation for impactful journalism. An alumnus of Asian College of Journalism, I joined Hindustan Times in New Delhi as a trainee reporter in May 1997. Over the years, I have been posted in Dehradun, Kathmandu (Nepal) and Guwahati. Currently, as Senior Assistant Editor at Hindustan Times, I lead a team reporting on India’s northeastern states. My work involves in-depth analysis, and engaging multimedia storytelling across formats, including text, photo, video, and interactive content. I am skilled in producing timely, shareable content, leveraging digital platforms and social media to engage global audiences. Throughout my career with the Hindustan Times, I have led diverse editorial teams, designed capacity-building activities, and supported reporters in developing strong story ideas, ethical reporting practices, digital skills, and fact-checking techniques. As Senior Assistant Editor for Northeast India, I have been responsible for guiding correspondents through complex political, humanitarian, and community-level stories using multimedia formats. Earlier, as Foreign Correspondent in Nepal, I produced extensive reporting during Nepal’s democratic transition and the 2015 earthquake and its aftermath.Read More

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