Although the previous MoU was to have been renewed on March 31, the two sides failed to seal the deal after IOC board lingered the issue. [break]
Acting Managing Director of NOC Suresh Kumar Agrawal and Commercial General Manager of IOC R Karandikar signed the agreement. The MoU will remain effective till March 31, 2017.
Under the newly signed agreement, India has agreed to waive off 2.5 percent additional charges that it passed on to Nepal as refinery margin. "This will help the country save around Rs 2 billion annually," NOC said in a statement.
IOC has also agreed to add a new port in Mumbai to enable NOC conveniently distribute the petroleum fuel in the mid-western and far-western regions. Presently, IOC has been relying on Haldiya port to import the crude.
The statement further says that IOC has also agreed to initiate process for establishing new refineries of LPG so that import volume of LPG can be increased.
“IOC has also agreed to provide assistance for the development and maintenance of NOC depots,” the statement concludes.
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