Customs roadblock for Essar diesel imports

Vol 7, PW 6 (04 Jun 03) News in Brief
     

Essar Oils dream of marketing imported petroleum products has hit a roadblock.

Customs authorities at JNPT and Mundra ports are refusing to clear the delivery of a 15,800-tonne diesel parcel until Essar provides a $4.5m Letter of Credit. Essar has not submitted the relevant document to customs," reveals a source.

"The cargo will be released in a day or two. Unless Essar submits the Letter of Credit, the cargo will remain blocked.

Jhulelal (owned by Shipping Corporation of India) has been delayed at JNPT for around 14 days. Demurrage charges for oil tankers of this size are $15,000 per day.

In May, Essar imported diesel with 0.25% sulphur from the Middle East port of Ruwais for sale in Maharashtra and Gujarat.

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