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| Sunday, 1 May 2005 |
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Indian Line of Credit - $150m for petroleum products The Indian Line of Credit of US$150 million for the supply of petroleum products to Sri Lanka has now become operational. The first two consignments reached Colombo on April 14 and 21. In all, there will be six to eight consignments over a period of six to eight months, a media release from the Indian High Commission said. The Line of Credit will provide valuable and timely assistance to Sri Lanka in the current context of rising international prices of petroleum. In July 2004, responding to a request made by the Government of Sri Lanka, it was decided that India would offer a Line of Credit of US$ 150 million for the purchase of petroleum products by Sri Lanka from Indian public sector oil marketing companies on term contract. This is in the form of a Line of Credit from the EXIM Bank of India on soft loan terms. The Oil and Natural Gas Commission (ONGC) of India is providing an export guarantee to the EXIM Bank for repayment of principal and payment of interest. ONGC will also supply petroleum products under the Credit Line either directly or through its subsidiary Mangalore Refinery Products Limited (MRPL). The loan agreement between Ceylon Petroleum Corporation and EXIM Bank of India was signed on October 15, 2004 in Mumbai. Pricing of products has separately been decided between Ceylon Petroleum Corporation and ONGC/MRPL. |
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