Hindustan Petroleum Corporation/HPCL-Mittal joint venture and Indian Oil Corporation have offered to examine the feasibility of laying petroleum product pipelines between India and Pakistan.
At the first meeting of the Experts’ Group on Trade in Petroleum & Petrochemical Products between India and Pakistan held here, the companies offered to examine constructing pipelines between HPCL-Mittal joint venture’s Bathinda refinery and Lahore, Indian Oil’s Jalandhar depot as tap-off point to Lahore subject to commercial viability and considerations.
Both sides noted that trade through the road route was limited to specified products, an official release said. The Indian side suggested that solid products such as pet coke and sulphur could be moved in open trucks, finished lubes (small packs and drums) in containers, and liquid products such as hexane, petrol, furnace oil, lube oil base stock be transported in ISO tank containers/tank trucks.
It was also noted that the use of the Attari-Wagah railway line was currently limited to trade in petrochemical products mainly by Indian Oil. Both sides agreed that the current prohibition on rail movement of container and open wagons for pet coke and sulphur needed to be re-examined.
The Indian side emphasised on developing another railway route for trade – the Munabao-Khokrapar route.
Noting that the current cost of confirmation of letters of credit was high, both sides agreed on the need to work out back-to-back credit lines between banks to put in place an efficient trade finance arrangement. It was agreed that this would be taken up with the respective Central banks, Finance Ministries and other agencies concerned.
Both sides also highlighted the need for a direct courier service between India and Pakistan, as at present cargo reaches much faster than the documents required for clearing of goods at the discharge port. They agreed to take up the matter with the appropriate authorities in their respective Governments. They also agreed on the need to make the SAFTA certificate recognition systems online to prevent delays in the process and thereby facilitate timely availing of import duty benefits.
Mr Vivek Kumar, Joint Secretary (International Cooperation), Ministry of Petroleum & Natural Gas, led the Indian delegation and Mr Shabbir Ahmad, Joint Secretary (I&JV), Ministry of Petroleum & Natural Resources, led the delegation from Pakistan.