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Faulty calibration of tankers raises NOC's hackles

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KATHMANDU, Sept 26: Nepal Oil Corporation (NOC) has decided to take up the matter of faulty calibration of tankers with Indian Oil Corporation (IOC) after its probe team found the NOC of incurring huge loss because of the ill practice.



The state-owned petroleum monopoly took a decision in this connection on Saturday, after the technical probe team led by engineer Birendra Goit submitted its report to NOC managing director Digambar Jha and other senior officials. [break]



“The report has unveiled very unfortunate wrongdoing by India´s authorized agencies that calibrate the tankers. We will soon write a letter to IOC marketing division in Mumbai,” said a source.



According to the report, almost all tankers assigned to deliver fuel from Barauni refinery are wrongly calibrated. As a result transporters operating on Barauni-Amlekhgunj section have been delivering as much as 250 liters less fuel on every consignment of 25 kiloliters.



The report has also reconfirmed that the faulty calibration had inflicted the corporation a loss of 20 million liters of fuel over a month between mid-August to mid-September, 2010. This has cost NOC Rs 1.3 million.



“This is a serious issue because the wrongdoing or negligence, whatever it may be, by the Indian calibrator has made us receive lesser fuel than what we paid for to IOC,” the source told myrepublica.com.



Jha admitted serious flaws in tankers operating in Barauni-Amlekhgunj route, but he refused to disclose actions NOC was planning to take.



NOC decided to raise the issue with the IOC because it does not recognize calibration done by the Nepali authority and delivers fuel only to the tankers whose height and width measurement is marked by the concerned Indian authority.



So, going by this provision, it becomes IOC´s responsibility to assure Nepal that the tankers are properly calibrated. “The IOC should answer why it allowed faultily calibrated tankers to deliver fuel,” said the source.



In the past, calibration of petroleum tankers was done by Indian Bureau of Standard. However, in recent years, the Indian government has authorized private firms and individuals to carry out the job, and knowledgeable sources said it has mainly spurred anomalies in the bilateral petroleum trade.



Moreover, the special meeting of the NOC officials held Saturday has assessed that its decision to continue imports from Barauni was wrong. “It has neither proven beneficial for the country, nor the NOC,” said the source.



Given the situation, the corporation might finally close the route, he stated. NOC employees have long been demanding that the management stop import from Barauni as it has been inflicting additional technical losses as well.


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