Nepal, China to facilitate joint investment in power sector

Beijing hikes 2019 non-state oil import quota

FE Team | Published: September 29, 2018 21:35:15

KATHMANDU, Sept 29 (Agencies): Nepal and China agreed to facilitate joint investment in the power sector during the first meeting of the Nepal-China Joint Implementation Mechanism held here on Friday, said a joint statement issued after the meeting.
The meeting was conducted as a stepping stone to implement the Memorandum of Understanding on Energy Cooperation signed by energy ministers of both countries during the visit of Nepali Prime Minister K.P. Sharma Oli to China in June this year.
According to the joint statement, both sides introduced their power systems, investment prospects, power markets, future plans among others to make both sides familiar with each other's power system.
The joint statement said that during the meeting, possible energy collaboration and the possibility of developing cross-border interconnection were also discussed.
Dinesh Ghimire, spokesperson at Nepal's Ministry of Energy, Water Resources and Irrigation (MoEWRI), told Xinhua on Friday that the two sides agreed to prepare a power system cooperation plan once the competentauthorities of the two countries give the go-ahead.
"A joint working group will be formed to prepare the plan." Ghimire said, adding that the plan will also involve the identification and selection of energy projects for joint development.
The Nepali team was led by Anup Kumar Upadhyay, secretary at MoEWRI, while the Chinese delegation was led by He Yang, an official at National Energy Administration of China, according to the joint statement.
Meanwhile, China has hiked its 2019 crude oil import quota for "non-state trade", generally meaning independent refiners, by 42 percent to 202 million tonnes, as two private companies prepare to launch commercial production at major new plants.
It is the second consecutive year that Beijing has increased the quota, which is equivalent to 4.04 million barrels per day (bpd).
The Commerce Ministry said in a statement companies must submit their applications for the quotas by Nov. 10.
The ministry did not provide a detailed breakdown of quota recipients, but they should include mostly independent refiners, which make up around two-thirds of the total.
"The main reason is that some major independent refineries have new production capacity that will go online in 2019," said Dong Xiucheng, a professor at the China Petroleum University.
At least two private refiners, Hengli Group and Zhejiang Petrochemical, are preparing to launch commercial production of two new large plants.
The move also underscores the growth of large private refiners, which are looking to build new petrochemcial plants making plastics, rubber and polyester as middle-class consumers demand high-end goods from cars to electronics.
The government has cracked down on smaller operators, often known as teapots, which often use outdated equipment to make lower grade fuels.
China's new tax and fee cuts will boost the real economy through reducing corporate burdens and creating a stable and fair business environment, experts told the Xinhua-run Economic Information Daily.
Starting from Oct. 01, the minimum threshold for personal income tax will be raised from 3,500 yuan (about 510 U.S. dollars) to 5,000 yuan per month, or 60,000 yuan per year.