The Nepal Oil Corporation (NOC) would possibly incur an estimated monthly loss 0f NPR 4.44 billion considering the new oil rates it received from the Indian Oil Corporation (IOC).

It would be the record high loss in the history of state-owned oil corporation.

“If an appropriate measure is not taken on time, it will severely affect the supply of petroleum products in the domestic market,” exclaimed NOC Spokesperson Binit Mani Upadhyaya.

With the new rates, the NOC is set to incur a loss of NPR 15.01 per liter on petrol, NPR 14.16 per liter on diesel, NPR 4.56 per liter on air turbine fuel (domestic). Likewise, the loss on cooking gas is NPR 511 per cylinder.

The projected loss is mainly attributed to the escalating price of crude oil in international market along with the depreciation of Nepali rupee against the US dollar.

As per the reports, the price of Brent Crude oil stood at USD 84.86 per barrel on Sunday.

According to the Nepal Rastra Bank, the current exchange rate of US dollar is NPR 120.72 per dollar.

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NOC stated that the cost for one liter of petrol had touched NPR 139.18 while diesel had gone up to NPR 120.01 per liter. Kerosene settled has NPR 93.94 per liter, and aviation turbine fuel for domestic usage is NPR 84.07 per liter.

For international usage, aviation fuel is nestled at NPR 76.44 per liter. Even cooking gas becomes costlier as the prices have reached NPR 1,961.88 per cylinder.

NOC’s spokesman Binit Mani Upadhyaya said that IOC’s new costs would saddle NOC with losses. They would incur a loss of NPR 9.18 per liter on petrol, NPR 7.01 per liter of diesel, and NPR 511.88 per cylinder.

NOC, which the government runs, has been securing a profit of NPR 19.59 per liter on a liter of Kerosene and NPR 1.93 per liter on aviation fuel meant for domestic usage. International usage aviation fuel sales have reaped in NPR 15.10 per liter.

NOC had jacked up the prices of petrol by NPR 23 per liter just last year. The corporation once again hiked up the costs of the fuels on August 23.

Spokesman Binit stated that NOC is forced to jack up the prices as oil prices are rising in international markets. The prices of crude oil soared to USD 79.28 per barrel on Sunday. This is three times the price a year ago, Bloomberg analyzed.

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The government has initiated this launch as two massive festivals are on the horizon of the nation. As Dashain and Tihar are set to be celebrated in October and November, respectively, the government has decided to meet consumer demand.

These ration shops will stay open and operational until the Chhath festival is celebrated on November 10.

Depots and outlets managed by the Food Food Management and Trading Company, and Salt Trading Corporation will soon be transformed into fair-price shops.

Additionally, the companies will sell the daily rations on mobile vehicles.

The commerce ministry stated that certain commodities would be retailed at discounted prices to the consumers. Rice, salt, beans, sugar, dairy products, and goats are among the items which will be discounted.

The central government of Nepal has also asked the Nepal Oil Corporation to maintain a smooth supply of fuel during this festive season.

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The Himalayan government has saved NPR 3 billion in fuel transport costs in the span of 2 years after the construction of its first fuel pipeline.

The first cross-border fuel pipeline in South Asia connects Motihari of India to Amlekhgunj of Nepal.

The Nepal-India fuel pipeline, which became operational in September 2019, can transport petroleum products at the rate of 294 Klph.

According to the Nepal Oil Corporation (NOC), around 3,500 Kl of diesel is being imported from India daily through the pipeline.

In fiscal years 2019/20 and 2020/21, Nepal imported 1.61 billion liters of diesel by using the pipeline. In just 2 months of the current FY 2021/22, the country imported a total of 124.41 million liters of diesel through the pipeline.

“It costs an average of NPR 45,000 to transport the fuel from the Barauni depot of India to Amlekhgunj of Nepal,” said Pradip Kumar Yadav, chief of Amlekhgunj depot of NOC. “The pipeline has helped cut the costs of fuel tankers apart from reducing technical losses.”

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Earlier in September 2019, Nepal and India jointly inaugurated the 69 km-long pipeline from Motihari in Bihar to Amlekhganj in Nepal, with a capacity to carry two million metric tonnes of petroleum products at an affordable price to Nepal.

Before inaugurating the pipeline, Nepal used to transport petroleum products from India with tanker trucks.

According to the Nepal Oil Corporation, Nepal has saved over NPR 800 million in its annual freight charges to transport petroleum products via the Amlekhganj pipeline.

[Also Read: Nepal Oil Corp To Hit NPR 11 Billion Profits in FY 2019/20]

“Nepal imported 534.1 million liters of diesel via the 69.2-km road during this period,” said Corporation’s Amalekhganj Depot’s Chief Engineer Bharat Regmi.

Before installation of the pipeline, transporting a liter of diesel would cost around NPR 1.5. Hence, Nepal saved NPR 802.6 million in the last two years, including an additional saving of NPR 1.5 million.

“Not only the freight charges, but it also has helped in avoiding the vagaries of transportation by tanker trucks,” said Surendra Kumar Paudel, Managing Director of Nepal Oil Corporation.

As of now, the pipeline is in operation for three days a week. So, the Corporation said that the savings could double once the full-fledged operation begins.

The post Nepal Saves NPR 802Mn Freight Charges with Amlekhgunj Petroleum Pipeline appeared first on Nepali Sansar.

NGI says that the cylinders are of ISI standard, which indicates that these products are tested and certified by both the Bureau of Standards of India and Nepal standards.

About NGI’s Non-explosive Cylinders:
A press release issued by the company reveals that the new cylinders are a combination of fiber & plastic that do not explode even in the event of a fire, ultraviolet protected, can withstand extreme weather and eco-friendly.

Additionally, these cylinders have a translucent body which informs the user of the LPG levels and are equipped with some more safety features, making them suitable for both domestic and commercial uses.

“The cylinders are easy to carry and are facilitated with many other features, such as gas leak detection, shut-off valve and safety protection,” says Gokul Bhandari, Executive Director, Nepal Gas Industries

Speaking further, he says, “In addition, we will conduct hydraulic testing every five years to ensure safety for the users.”

While emphasizing on the uniqueness of these products, he said that the cylinders are internationally acclaimed for their safety and convenient features.

The cylinders are currently available at the following size and prices:

• 14.2 kg cylinder @ NPR 2,925
• 5 kg cylinder @ NPR 6,995

Bhandari says that they imported 10,000 units in the first lot and will manufacture the containers based on the demand in the future.

NGI has tied up with Mero Kirana as online partner for the sale of the gas containers within Kathmandu valley.

NOC to Launch Color-Coded Cylinders:
In another interesting update concerning liquified petroleum gas LPG, Nepal Oil Corporation (NOC) is re-considering usage of painted cylinders for household and commercial customers.

The decision comes as a result of increasing losses over LPG sale. The state-owned oil monopoly estimates losses as follows:

• According to NOC, it supplier makes a loss of Rs 280.64 on every gas cylinder sold.
• It estimates a loss of Rs 250 million for the month of September
• The corporation loses Rs 2.36 on every liter of diesel sold
• NOC Managing Director Sushil Bhattarai predicts loss of more than 1 billion on diesel sale, in the next month
• He estimates an increased loss of Rs 600-700 on each cylinder during winter

To address the growing losses, Bhattarai says that NOC has proposed usage of color-coded cylinders to Nepal Commerce and Customer Welfare Committee on August 20, 2018.

“As the working guideline on dual cylinders is still in place, we have planned to revise the guideline in the new context to enforce the system effectively,” said Bhattarai.

 Currently, Nepal’s requirement of cooking gas amounts to Rs 35,000 per month.

Conclusion:
We hope that both these measures will address some of the main problems of Nepal’s growing gas demand and bring about the required discipline in Nepal’s LPG sector.

The post Non-Explosive and Color-Coded Cylinders to Address Nepal’s LPG Demands appeared first on Nepali Sansar.

The four routes that the sub-continent has agreed to make two-way include:

East Region

• Kathmandu-Biratnagar-Dhaka
• Kathmandu-Janakpur-Kolkata
• Kathmandu-Janakpur-Patna

West Region

• Kathmandu-Mahendranagar-Delhi

Now, Nepal carriers will be able to fly through the L626 route at heights ranging from 15,000-24,000ft. Following this, Nepali private air carriers such as Buddha Air will connect New Delhi with Nepalgunj.

This new development comes as a breakthrough for both nations, especially for Nepal that was concerned over easing traffic congestion in Simara Airport, which is a major destination for inbound flights in the country.

In this regard, the Civil Aviation Authority of Nepal (CAAN) and the Airport Authority of India (AAI) signed the MoU to conduct a safety assessment of the proposed routes. However, as per Nepal’s proposal, two vital entry points Nepalgunj and Mahendranagar are yet to be opened. India has agreed to probe further on the same by September 2018.

“Discussion on two vital entry points remained on hold, but overall the agreement is in fact a significant breakthrough,” said Deputy Director General of CAAN, Rajan Pokhrel.

“As per Nepal’s request for entry from the L626 route for high-level flights or flights above 24,000ft and another entry point from Nepalgunj, India agreed to make further examination by September 2018,” adds Pokhrel.

It may take a year before all the proposed air routes become functional.

The Background
Pending since 2014, the decision regarding the international air routes for Nepal didn’t take off due to several reasons.

First off, the decision took a halt when Nepal officials visited New Delhi in December 2016 to initiate negotiations, but returned with diverted attention over a public issue. Again, in February 2017, the two nations decided to form a technical team to resume talks, but ill-fate pursued when things didn’t materialize.

Finally, Nepal had welcomed a technical delegation from the Airports Authority of India (AAI) on June 14, 2018. 

As part of the discussion, the Civil Aviation Authority of Nepal (CAAN) and the AAI team discussed the prospects of three key border routes that Nepal suggested to India, i.e., Janakpur in the east, Nepalgunj in the mid-west and Mahendranagar in the far west regions.

Speaking about the project, an important CAAN official said, “We don’t know about the mandate that the Indian delegation has been entrusted with by its government, but we are prepared to sign a MoU if the discussions yield a positive outcome.”

The two teams agreed on collating a report after the safety assessment was completed by both nations’ technical teams and published to the Aeronautical Information Publication (AIP).

AAI team to Nepal was be led by Anil Kumar Dutta, member of Air Navigation Services (ANS) and board member of AAI.

New Projects Awaiting Nod
The latest agreement is crucial to many other infrastructure projects in the pipeline that are financially and technically dependent on it:

International Airport at Nijgadh:

Nepal is planning for the new airport at Nijgadh. Estimated at a budget of USD 1.2 million and spread across an area of about 7,000 hectares, the Nijgadh international airport will ease congestion at the Tribhuvan international airport at Kathmandu.

Nepal is also focusing on the construction of two important airports, USD 80 million Gautam Buddha Airport in Bhairahawa (by 2019) and the USD 16 million airport in Pokhara (by July 2021).

Airfares Experience Hike with Fuel Surcharge
In another recent update, domestic airfares spiked high as airlines spiraled the fuel surcharge in view of the costs incurred on fuel purchase.

On June 5, 2018, the Airline Operators Association of Nepal (AOAN) signaled a go-ahead to its members to increase market prices.

However, airlines personnel say that customers will not be able to feel the heat as they would rarely have to pay in full on account of the price war towards the end of the travel season.

Fuel Charges Post Hike
Nepal Oil Corporation (NOC) increased aviation fuel prices by Rs 5 per liter as compared with a two-year high of Rs 100 per liter.

The fuel surcharge on the ticket is increased by Rs 175, making the fuel surcharge Rs 440.

Post the increase in fuel surcharge, a normal flight between Kathmandu to Dhangadhi will cost Rs 12,870 including a fuel surcharge of Rs 4,410.

On a Positive Note:
With the recent Prime Minister visits to both countries, Nepal and India have joined hands to accelerate the growth of both nations by addressing concerns like this airspace issue. Looking at the pace of things followed by the agreement on opening international air routes to Nepal, we are sure that more of such agreements will boost the aviation sectors of both the nations.

Read More:–

• Nepal Airlines Update: Japan Opens All Air Gates for Nepal Flights

The post Nepal Aviation Update: Nepal, India Negotiate for Better Air Connectivity appeared first on Nepali Sansar.

The move closely watched by Indo-Nepal communities, resulted in positive outcomes as evident in Oli’s statements after the successful completion of his three-day visit during April 6-8, 2018.

As part of the visit along with his wife and 53-member Nepali delegation, Oli held discussions and special meetings with the Indian dignitaries including President Ram Nath Kovind, Prime Minister Narendra Modi and other key political leaders and personalities.

Significant and Fruitful

“My official visit to India was significant and fruitful. The visit has helped in clearing misunderstanding

and mistrust, and strengthening mutual trust and understanding. The bilateral relations will move forward in a new direction on the basis of equality and mutual interest,” Oli said in a statement after arriving at the Tribhuvan International Airport in Kathmandu post his India visit, indicating a new era for Indo-Nepal bilateral ties under his government.

We have agreed to expedite past agreements and understandings reached between the two countries, he added.

As part of the visit, both the sides also discussed cooperation across various sectors. Let’s have a glance at some of the key highlights of sector-wise cooperation discussed during Oli’s visit:

In the bilateral meetings, India and Nepal agreed upon few key agreements that have been under discussion for quite some time.

Stating that both the Prime Ministers were satisfied with the bilateral talks, Indian Foreign Secretary Vijay Gokhale informed that the two sides discussed strengthening of cooperation through agriculture, trade, defense, security, along with enhanced connectivity through railway and water ways.

Both the sides have reportedly come to a consensus on taking ahead the construction of Raxaul- Kathmandu railway line and the operation of Nepalese steamers for goods and public movement from Nepal to other countries.

Trade, Security & Inland Waterways

Towards trade cooperation, the two sides decided to develop inland waterways within the trade and transit framework for a seamless movement of cargo between the two countries.

During the discussions, Oli also raised concerns over widening Nepal’s trade deficit with India and urged Indian Government to encourage more Nepali exports.

With regard to security, he said, “We have strong relations when it comes to the aspect of security. We will work together to stop misuse of our open border.”

Green Revolution and Connectivity                                                                                                                  

As part of visit to the Uttarakhand’s GB Pant University of Agriculture and Technology, where he was awarded the honorary doctorate (Doctor of Science), Oli urged India’s support for revolutionizing agriculture in Nepal.

“Both India and Nepal are agriculture-based economies and should work together in boosting agricultural output,” Oli said in a statement.

On the occasion, Oli also welcomed the University’s collaboration in revolutionizing the Nepali agriculture sector saying, “Looking towards Indian varsities like GB Pant, one of the harbingers of the Green Revolution, who can aid us in achieving our objectives in this regard… I think if the university and Nepal collaborate in the sector, agriculture in our country will get revolutionized through a technological boost.”

He further said India’s and the University’s support are key for strengthening the two agricultural universities in Nepal that are in the initial stages of development with the need for research support.

In response, Uttarakhand Governor K.K. Paul expressed the University’s willingness to collaborate with the Government of Nepal in the fields of horticulture and herbal farming.

Lauding Oli’s visit, Chief Minister of Uttarakhand Trivendra Singh Rawat urged for improved connectivity between Nepal and Uttarakhand, especially in the border areas of Tanakpur and Dharchula.

He also pitched for direct flights between Kathmandu and Dehradun.

Call for Investment

As part of the visit, Oli held a round of discussion with the Indo-Nepal business community, wherein, he urged the Indian business community to invest in Nepal.

Citing Nepal’s investor-friendly environment, Oli pitched for investments across infrastructure, tourism, IT, agriculture and power sectors.

Stating that Nepal has fair and investor-friendly policies along with a supportive policy regime, Oli called on the businessmen for massive foreign investment.

“Indian investors have invested across the globe, so why not go to the next-door Nepal. Geographical proximity, easy access and cultural similarities are all there to make you feel good about Nepal,” noted Oli.

Potential Market & Incentives

Speaking on market opportunities Nepal has for the foreign investors or collaborators, Oli said, “Investors always look for market. Look at Nepal’s position. For us, market is not a problem, but production is a problem. It is lying between two vibrant economic powers with huge population of the world — India and China. That assures you of a promising market of 2.5 billion people. Seize the opportunity.”

Lauding European markets for their duty-free access to Nepal, he said, “We are ready to listen to you, your advises and suggestions. We want to know your views. We are committed to further improving our business climate.”

Wooing foreign investors, he noted that Nepal offers attractive incentives compared to other countries by way of simplified tax regimes and reduced tariffs.

He also informed about Nepal’s plans to establish Special Economic Zones (SEZ) in the cities sharing borders India along with offering necessary incentives to the industries, forming liberal labor laws, among others.

First International Cross-country Pipeline

As part of the visit, Oli and Modi inaugurated the long-awaited initiative of Rs 3.24 billion worth India-Nepal petroleum pipeline from Motihari to Amlekhgunj. This is the first international cross-country pipeline project in India.

Under the project, Indian Oil Corporation will supply Nepal’s major petroleum products from its Barauni Refinery and Raxaul depot in Bihar to Amlekhganj depot of Nepal Oil Corporation.

The 69-km-long pipeline project involves setting up of a 10.75-inch diameter cross-country pipeline that stretches from Motihari in Bihar to Amlekhganj in Nepal, with 32.7 km of pipeline in the Indian territory and 36.2 km in the Nepali territory.

The design-throughput capacity of this pipeline, which has pumping facilities at Motihari, stands at 2.0 million tons per annum.

This major project signed in 2015 is expected to be completed by March 2019.

The End Note

Overall, Oli’s recent visit to India has opened avenues for new form of bilateral cooperation between Nepal and India contributing to a strong South Asia. Now, it’s time for wait and watch!

The post Oli India Visit 2018: India, Nepal Strengthen Ties, Target Next-level Development appeared first on Nepali Sansar.

Here are the some of the key updates in the wake of final round of elections:

Silence Period Underway

In the wake of legislative elections for electing House of Representatives and Provincial Assemblies, The Election Commission (EC) of Nepal announced the silence period during December 4-7, 2017.

Campaigning, poll surveys, airing of any material in favor or against any political party, among other election-related activities have been banned as part of the election code of conduct during the silence period.

However, publishing and distribution of voter education materials, information or any related message, among others by EC are out of restriction.

Borders Sealed for 72 hours

As part of security measures for Nepal general election 2017, the country’s local administration has closed public movement across 22 border points.

The Government of Nepal sealed borders for 72 hours starting from December 05, 2017.

While a large number of people were stranded at the Kakadbhitta border point, DSP Tanka Bhattarai of the Area Police Office, Kakadbhitta, says, “Those carrying Nepali citizenship and identity cards are only allowed to enter Nepal. The border is open for those traveling to India.”

“Besides the closure of our customs office, we’ve also stepped up security ahead of the polls,” says Binod Prakash Singh, Chief District Officer of Parsa.

Bhadrapur in Nepal’s eastern border with Bihar state and a 500-km long Indo-Nepal border connecting Uttar Pradesh are among those closed.

The closed borders will be reopened from the midnight of December 07, 2017.

Special Transportation for Voters

To ease the voting process, political parties have booked 80 percent public vehicles to transport voters from Kathmandu to their home districts, informed the Federation of Nepalese National Transport Entrepreneurs.

The political parties have already made reservations in this regard, informed Dolanath Khanal, FNNTE President.

Condemning the parties’ move, “Taking voters to their home districts with an aim to influence their vote is gross violation of the election code of conduct,” says Navaraj Dhakal, EC Spokesperson.

Rise in Fuel Import Prices

Nepal’s fuel import bill during the October-November of 2017 has gone up 40 percent in the light of general elections thus impacting the election campaigning activities involving vehicular movement.

According to Nepal Oil Corporation (NOC), the fuel import bill touched Rs 7.44 billion and Rs 8.30 billion in August and September, respectively, which increased to Rs 10.17 billion by October and further to Rs 13.18 billion in November.

The import bills of petrol, cooking gas, diesel and aviation fuel have gone up during the period.

While diesel import has increased from 100,447 kiloliters during August-September period to 141,054 kiloliters by mid October-November period, petrol imports saw a 20 percent rise in the last two months and stood at 42,000 kiloliters.

Human Rights Alerts

In the wake of recent blasts that targeted few political party members and poll contestants, the National Human Rights Commission (NHRC) urged the government to tighten poll security.

In this regard, NHRC has also deployed its special team to take stock of the victims affected in recent blasts.

Meanwhile, the renowned international human rights body Amnesty International (AI) also urged the Nepali Government to ensure safety and security of public and human rights.

“AI Nepal notes with concern the recent attacks targeting political leaders and campaigners with explosive devices that have resulted in numerous injuries and one death in Dang,” AI Nepal said in a statement.

Nirajan Thapaliya, Director of Amnesty International Nepal, said, “There should be an independent and effective investigation into incidents of violence, and the suspected perpetrators should be held accountable through fair trials.”

Special Observation Teams, Security High on Agenda

EC has allowed a total of 45,000 members to monitor the observe and monitor the final phase of election.

This includes 52 domestic observing institutions and four international observer groups.

Besides, the Nepal Election Observation Committee (NEOC) is deploying more than 2,000 observers to monitor the elections across 45 districts.

“Considering the ongoing explosions, we are focusing more on election security. We have a team of experts on security. We are not only paying attention to the election day but also to the days before and after the elections,” says Kapil Shrestha, Vice-Chairperson, NEOC.

Shrestha further informed that a special focus will also be laid on other issues such as booth captures and multiple voting that impact free and fair elections.

Election Observation Committee Nepal (EOCN) and Democracy Resource Centre (DRC) are among other government bodies that are tracking security situation, political environment, electoral process and voter awareness, among other aspects.

The post Nepal Election 2017: Alerts on Trade, Human Rights and Security appeared first on Nepali Sansar.

The Nepal Oil Corporation (NOC) is facing a probe for misappropriation of approximately Rs 800 million in multiple land deals worth Rs 1.61 billion. The Commission for Investigation of Abuse of Authority (CIAA), which has begun the preliminary investigations, confiscated all the relevant documents from the NOC headquarters.

The process for buying land was initiated by the NOC to build oil storage facilities in all the seven provinces. This followed the government directive on maintaining fuel stock for a three-month period. While the Parliamentary Industry, Commerce and Consumer Welfare Committee (ICCWC) had instructed NOC to construct the storage plants in government-owned land, the latter began dealing with private contractors to buy land plots.

The ICCWC along with a sub-committee of the Parliamentary Finance Committee are probing possible fraud in the land deals.

Shiva Kumar Mandal, the Minister for Supplies said that “We are waiting for the report of the probe panel formed under the parliamentary committees. We will take necessary action if anyone is found guilty.”

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