State Trading Corporation (STC) of Mauritius is expected to renew its petroleum products sourcing agreement with Mangalore Refinery and Petrochemicals Ltd (MRPL) shortly.

At a bilateral meeting in Port Louis on Friday evening, Commerce and Industry Minister Anand Sharma was informed by Sayyad Abd-Al-Cader Sayed-Hossen, Minister of Industry, Commerce and Consumer Protection, Mauritius, that the details had been sorted out and final touches are being put in place. Sharma had taken up the MRPL issue with his counterpart in Mauritius on the sidelines of the First Trade Ministerial Level Economic and Business Conference of Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) Nations in Port Louis.

In 2007, MRPL had signed a three-year agreement to export fuel worth $2 billion to Mauritius. It was agreed that MRPL would export 1.1 million tonnes of auto and jet fuels and furnace oil annually for three years.

Subsequently, STC Mauritius had some concerns on the billing cycle and on contamination. Attempts made by MRPL to renew the contract had not yielded much result. In fact, MRPL was apprehensive that STC Mauritius may not be serious about concluding the contract.

Petroleum products account for more than 80 per cent of India’s exports to Mauritius.

Sharma said, “Such issues are bound to arise in such agreements...but mature Governments can sort them out.”

STC and MRPL have now agreed on the quantity of products, pricing formula, and premium at which MRPL will sell the product and size of the cargoes, among other conditions. The new contract will also be for three years.

richa.mishra@thehindu.co.in

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