Identifier
Created
Classification
Origin
05KATHMANDU2952
2005-12-30 07:06:00
CONFIDENTIAL
Embassy Kathmandu
Cable title:
INDIAN OIL CORPORATION FLEXIBLE WITH NEPAL'S LATE
how-toVZCZCXYZ0000 OO RUEHWEB DE RUEHKT #2952 3640706 ZNY CCCCC ZZH O 300706Z DEC 05 FM AMEMBASSY KATHMANDU TO RUEHC/SECSTATE WASHDC IMMEDIATE 9696 INFO RUEHLM/AMEMBASSY COLOMBO PRIORITY 4035 RUEHKA/AMEMBASSY DHAKA PRIORITY 9083 RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 2008 RUEHLO/AMEMBASSY LONDON PRIORITY 3466 RUEHNE/AMEMBASSY NEW DELHI PRIORITY 8968 RHEHNSC/NSC WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY
C O N F I D E N T I A L KATHMANDU 002952
SIPDIS
SIPDIS
DEPT FOR SA/INS
E.O. 12958: DECL: 12/29/2015
TAGS: ECON EPET ENRG ETRD EFIN PGOV NP
SUBJECT: INDIAN OIL CORPORATION FLEXIBLE WITH NEPAL'S LATE
PAYMENTS
REF: KATHMANDU 2555
Classified By: CDA Elisabeth I. Millard, reasons 1.4 (b/d)
THE IOC WILL BE FLEXIBLE WITH LATE PAYMENTS FROM NEPAL
--------------------------------------------- ---------
C O N F I D E N T I A L KATHMANDU 002952
SIPDIS
SIPDIS
DEPT FOR SA/INS
E.O. 12958: DECL: 12/29/2015
TAGS: ECON EPET ENRG ETRD EFIN PGOV NP
SUBJECT: INDIAN OIL CORPORATION FLEXIBLE WITH NEPAL'S LATE
PAYMENTS
REF: KATHMANDU 2555
Classified By: CDA Elisabeth I. Millard, reasons 1.4 (b/d)
THE IOC WILL BE FLEXIBLE WITH LATE PAYMENTS FROM NEPAL
-------------- --------------
1. (C) The NEPAL Oil Corporation (NOC) and Indian Oil
Corporation (IOC) concluded a three-day review meeting on
December 25th in which the IOC stated it "would extend
maximum help" to the NOC regarding the NOC's request to
extend payment deadlines. The NOC has recently paid import
bills late and in installments (reftel). Suresh Kumar
Agarwal, Director of Marketing, NOC, told Emboff that "the
IOC's response to more flexible terms of payment as proposed
by the NOC was very positive." Agarwal added that the issue
of the NOC's outstanding interest payments (charged by the
IOC on late payments) to the IOC was not discussed at the
meeting.
MORE COOKING GAS AND NEXT REVIEW MEETING
--------------
2. (U) The IOC agreed to the NOC's request to supply more
cooking gas.
3. (U) Per an agreement between the IOC and NOC, review
meetings are to be held every six months. However, this was
the first review meeting held in two years. The two parties
scheduled the next review meeting for February 2006 in
Mumbai, India.
COMMENT
--------------
4. (C) While deregulation of the petroleum industry would
solve the subsidy problem, the move would be unpopular with
voters. With municipal elections scheduled for February
2006, Post does not expect His Majesty's Government of NEPAL
to deregulate the petroleum industry anytime soon. The
current practice of late and installment payments to the IOC
is likely to continue. Further, Post believes that the IOC
probably chose not to discuss outstanding interest payments
because the issue was less urgent than receiving payment for
imports in general.
MILLARD
SIPDIS
SIPDIS
DEPT FOR SA/INS
E.O. 12958: DECL: 12/29/2015
TAGS: ECON EPET ENRG ETRD EFIN PGOV NP
SUBJECT: INDIAN OIL CORPORATION FLEXIBLE WITH NEPAL'S LATE
PAYMENTS
REF: KATHMANDU 2555
Classified By: CDA Elisabeth I. Millard, reasons 1.4 (b/d)
THE IOC WILL BE FLEXIBLE WITH LATE PAYMENTS FROM NEPAL
-------------- --------------
1. (C) The NEPAL Oil Corporation (NOC) and Indian Oil
Corporation (IOC) concluded a three-day review meeting on
December 25th in which the IOC stated it "would extend
maximum help" to the NOC regarding the NOC's request to
extend payment deadlines. The NOC has recently paid import
bills late and in installments (reftel). Suresh Kumar
Agarwal, Director of Marketing, NOC, told Emboff that "the
IOC's response to more flexible terms of payment as proposed
by the NOC was very positive." Agarwal added that the issue
of the NOC's outstanding interest payments (charged by the
IOC on late payments) to the IOC was not discussed at the
meeting.
MORE COOKING GAS AND NEXT REVIEW MEETING
--------------
2. (U) The IOC agreed to the NOC's request to supply more
cooking gas.
3. (U) Per an agreement between the IOC and NOC, review
meetings are to be held every six months. However, this was
the first review meeting held in two years. The two parties
scheduled the next review meeting for February 2006 in
Mumbai, India.
COMMENT
--------------
4. (C) While deregulation of the petroleum industry would
solve the subsidy problem, the move would be unpopular with
voters. With municipal elections scheduled for February
2006, Post does not expect His Majesty's Government of NEPAL
to deregulate the petroleum industry anytime soon. The
current practice of late and installment payments to the IOC
is likely to continue. Further, Post believes that the IOC
probably chose not to discuss outstanding interest payments
because the issue was less urgent than receiving payment for
imports in general.
MILLARD