PUBLIC sector undertaking Numaligarh Refinery Limited (NRL) located in Assam will soon sell motor spirit and high speed diesel to Nepal. NRL signed an agreement with Nepal-based Birat Petroleum Private Limited (BPPL) on March 20 at Kathmandu for sale of...motor spirit (MS) and high speed diesel (HSD) by NRL to BPPL in Nepal, the refiner said in a statement.
The agreement was signed by AK Bhattacharya, GM (M, BD & CP) on behalf of NRL and Neeraj Chettri, director on behalf of BPPL in presence of Dipak Chakravarty, MD, NRL, Pawan Kumar, under secretary, ministry of petroleum & natural gas, government of India and Arjun Chettri, chairman, BPPL besides other officials of both the companies, the statement added.
According to the agreement, NRL is expected to sell around 100 KL of MS & 5000 KL of HSD per month to BPPL in Nepal. The actual sale is expected to start in the first quarter of FY 2014-15 after BPPL obtains necessary clearance from Government of Nepal for import of MS & HSD based on this agreement.
BPPL has also acquired adequate land near Kathmandu for setting up a second storage facility to meet the demand of Central Nepal. The total demand of petroleum products in Nepal is around 1 million metric ton per annum.
The statement added that NRL’s foray into Nepal markets is a strategic move to generate market for its products in view of proposed expansion of its refining capacity from 3 to 9 million metric tons per annum.
The governments of Nepal and India have already given NRL permission to enter the Nepal market. According to top NRL officials the company is expected to sell around 100 kl of motor spirit and 5,000 kl of high speed diesel per month to BPPL.
The actual sale is expected to start in the first quarter of the 2014-15 financial year after BPPL obtains necessary clearance from the government of Nepal.
The total demand of petroleum products in Nepal is around one million tonnes a year.
Earlier, NRL has achieved yet another feat by attaining the coveted ISO : 50001 : 2011 certification for Energy Management Systems for the scope 'Production of Petroleum products by refining crude oil including product dispatch terminal operation' from internationally acclaimed certifying agency, DNV, Netherlands. With this, NRL becomes the second public sector refinery in the country to receive this distinction.
The present authorized capital of the company is Rs 1,000 crore and paid up capital is Rs 735.63 crore. BPCL owns the maximum 61.65 percent in the PSU and OIL 26 percent.