Nepal to open up imports

Indian Oil Corp. (IOC) has lost the monopoly status that it held since 1974 to supply petroleum products to Nepal. Last week, Nepal Oil Corp. (NOC) signed an agreement with IOC that will allow NOC to import refined petroleum products from other countries. Last month, External Affairs Minister Pranab Mukherjee asked Petroleum Minister Murli Deora to reconsider IOC’s cut in supplies to NOC, taking into account that the Indian state-run firm had enjoyed a monopoly status with NOC since 1974. Beginning November, IOC started cutting supplies to NOC by 20% to recover Rs339 crores (US$79.43 million) that NOC owed for bills from April 2005. (April 3, 2007)