The Assam-based Numaligarh Refinery Limited (NRL) has been conducting business as usual with Bangladesh since the beginning of the crisis in the country, the company told Moneycontrol.
NRL, a subsidiary of state-owned Oil India Limited (OIL), exported 8 thousand metric tonnes (TMT) of diesel in November to Bangladesh and has received payment for all the orders delivered to the country.
NRL had signed a 15-year, long-term sale and purchase agreement in 2017 with Bangladesh Petroleum Corporation (BPC) for the export of HSD (high-speed diesel). The orders delivered to the country are part of the same agreement.
NRL supplies diesel to the country through a pipeline connecting its Siliguri marketing terminal to Parbatiput in Bangladesh. The company largely exports diesel to the neighbouring country through the pipeline, whereas wax is supplied in minuscule quantities.
Bangladesh’s financial crisis
The financial crisis in Bangladesh has not improved since political unrest began in August. In August, former Bangladesh Prime Minister Sheikh Hasina resigned from her post and subsequently fled to India amidst mass protests by students over a quota system for government jobs.
According to media reports, Bangladesh has halved the power it buys from Adani Power amid the financial crisis. Adani Power, which supplies Bangladesh with electricity from its 1.6 GW coal-fired power plant in Jharkhand, has approximately $800 million in payment due from Bangladesh.
Moneycontrol had earlier reported that the Bangladesh government is securing forex to settle the outstanding payments to Indian power producers, including SEIL Energy and PTC India. Bangladesh owes more than $1 billion to Indian power companies that supply electricity.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
