India reacts guardedly to Nepal-China pact for oil supplies

“We have seen reports that Nepal has signed a pact with China”.

He said, due to the unrest on the border Indian Oil Corporation is able to supply only 30 per cent of Petroleum, Oil and Lubricants.

Details on how much fuel Nepal would receive, prices and other arrangements still need to be worked out, Baral said, but confirmed the supply would be on a regular basis.

According to Shiva Ram Gelal, chief district officer of bordering district Rasuwa, the empty tanks will reach Chinese city Kerung on Saturday morning to be filled with Chinese petrol. Among China’s grant assistance of 1,000 tons of petrol, Nepal will collect 100 tons of petrol Saturday in the first lot. “A working group of Nepal also visited China”. “China and Nepal are friendly neighbors”, he said.

Stressing that India-Nepal relations were deep rooted and multi-faceted, he expressed the hope that the ongoing talks between the Nepalese government and United Democratic Medhasi Front (UDMF) will be fruitful and the situation will be resolved through political dialogue in manner which has broad based acceptance, fulfilling the aspiration of all sections of the Nepalese society.

Highly placed sources in Nepal told The Hindu that the request to China for supplies was routed through Narayan Kaji Shrestha, the Vice-Chairman of the ruling UCPN (Maoist) during his visit, earlier this month, to Beijing where he attended a conference on the revival of the Silk Road.

NOC top representatives were keen to announce the company’s second oil trade partner. He said “LPG bullets” are also being sent through crossings that are open. On Thursday alone, 131 fuel tankers crossed into Nepal.

Madhesi protesters in Nepal’s plains have choked key trade transit points between their country and India for more than two months, to pressure Kathmandu to tweak a new Constitution that many in the community have argued discriminates against them. On the contrary, “a new generation in Nepal is keen to establish a trilateral partnership with India and China as part of a more evenly balanced foreign policy”. In the past, the country has not imported any fuel from China, however, the deal could establish good business relationship between the two countries.