India, Nepal agree to construct petroleum pipeline
India and Nepal have agreed to construct a 41-km long petroleum pipeline for the supply of petroleum products including diesel, petrol, and air turbine fuel (ATF) to the land-locked Himalayan nation. The pipeline will ensure smooth flow of petroleum products from Raxaul in Bihar to Amlekhgunj in Nepal. The fuel is currently supplied in containers through highway. India’s Petroleum & Natural Gas Minister Dharmendra Pradhan, who along with senior government officials and representatives from oil companies is on a two-day visit to Kathmandu, has signed an Memorandum of Understanding (MoU) with Nepalese minister for commerce and supplies Sunil Thapa for the construction of pipeline. “Pradhan is visiting Kathmandu, Nepal on August 23-25, 2015. During the official visit he will sign the MoU between Government of India and Government of Nepal for the construction of petroleum products pipeline from Raxaul (India) to Amlekhgunj (Nepal),” the ministry said earlier in a statement. The pipeline project worth Rs.275 crore is expected to be completed within three years. India’s public sector oil marketing company Indian Oil Corporation (IOC) will contribute Rs. 200 crore towards the project, while the remaining Rs.75 crore will be borne by the Nepal Oil Corporation. IOC has also underlined a condition under which Nepal will buy petroleum products for at least 15 years in exchange for its major chunk of investment. Kathmandu is heavily dependent on India for meeting its fuel requirements. Currently, oil products are supplied to Nepal from IOC’s depot at Raxaul. Once operational, the new pipeline will facilitate a smooth transfer of petroleum products that are currently transported through the Indo-Nepal international highway. The project will further boost India’s exports to the Himalayan country and enhance the bilateral cooperation. Prime Minister Narendra Modi had announced the pipeline project during his visit to Nepal in August last year.
August 24, 2015 | 2:15pm IST.
to success.