Top govt team to discuss fuel supply issues with India

Another committee to explore fuel import options

KATHMANDU, Oct 10: The government has formed a high-level team led by Minister for Foreign Affairs Mahendra Bahadur Pandey to hold talks with the Indian government to ease supply of petroleum products and other essential goods.

A cabinet meeting on Friday took the decision to form a seven-member team to hold talks with the Indian government to end the 'undeclared' blockade imposed by India along the Nepal-India border points through diplomatic channels and resume supply of essential goods in the country at the earliest.

A press statement issued by the Ministry of Foreign Affairs following the cabinet decision stated that Minister for Commerce and Supply, Nepal's ambassador to India, secretaries of the Ministry of Foreign Affairs, Ministry for Commerce and Supply, Ministry of Home Affairs and Ministry of Finance have been appointed as members of the team.

Minister for General Administration (MoGA) Lal Babu Pandit said the team was formed to resolve the ongoing fuel crisis through diplomatic channels and to further strengthen Nepal-India relations.

Despite four decades of commercial association and agreement with the Indian Oil Corporation (IOC) -- the sole petroleum supplier to the Nepal Oil Corporation (NOC) -- it has failed to supply fuel to Nepal citing security reasons for the last 17 days. Similarly, supply of other essential goods from India has also been severely affected due to the 'unofficial' trade embargo imposed by India.

After the IOC failed to supply petroleum products to Nepal, the NOC through a public notice Thursday has sought expression of interest from international fuel suppliers within three days to supply petroleum products to Nepal for at least 15 days.

"The team will also carry out a feasibility study for importing petroleum products from other friendly countries," said Minister Pandit.

The cabinet also has formed a committee with Minister for Commerce and Supplies Sunil Bahadur Thapa as coordintor and comprising chief secretary, finance secretary and commerce and supply secretary as members. The committee will recommend the government the best possible options for importing petroleum products.

Likewise, the cabinet has also formed another committee led by Vice-Chairman of the National Planning Commission (NPC) Govinda Raj Pokharel to prepare a strategic plan for ensuring sustainable fuel supply and its proper management.

Meanwhile, the cabinet also made a controversial decision to provide Rs 3.5 million to Khum Bahadur Khadka for his medical treatment. Khadka, a Nepali Congress leader and former home minister was earlier convicted of corruption charges.

"The cabinet has decided to provide Rs 1.5 million as treatment expenses and Rs 2 million as compensation for his house destroyed by Maoist rebels in Dang during the insurgency," informed Minister Pandit.

Minister of Law Narhari Acharya had forwarded the proposal to the cabinet to provide compensation to Khadka.