Public sector refiner and oil marketing company Bharat Petroleum Corporation (BPCL) is eyeing Nepal to sell diesel and petrol from its Assam-based Numaligarh refinery. At present, only Indian Oil Corporation (IOC) sells fuel to the Himalayan nation.
The petroleum ministry has given its go-ahead to BPCL to commercially pursue the option. A team from Numaligarh refinery visited Nepal last week to discuss the modalities.
Currently, Nepal depends on IOC for most of its petroleum products.
The proposal by BPCL is not linked to the current trade between IOC and the neighbouring country.
The target is to sell up to 1 million tonne, comprising diesel and petrol, in phases, said a company official privy to the development.
The Numaligarh refinery plans to export products from its terminal in Siliguri, nearly 100 km from Biratnagar in Nepal. In the long run, a pipeline may also be constructed if BPCL secures potential market in the neighbouring country.
BPCL owns 61.55% in the Numaligarh Refinery while the Assam government holds 12.35%.
The remaining 26% is held by Oil India.
This development comes at a time when BPCL plans to ramp up the capacity of the Numaligarh Refinery to about 9 million tonne per annum (mtpa) from 3 mtpa. This would entail investment of more than $ 2 billion.
The company is also contemplating to construct an over 1,300-km pipeline from Odisha to Numaligarh to source imported crude oil.
The increased capacity will help BPCL expand its fuel-retailing business. In the long run, it also aims to tap markets in other neighbouring countries such as Bhutan.