Economic Times
PTI
August 15, 2015
KATHMANDU: The foundation of a much-touted cross-border pipeline to pump petroleum products like petrol and diesel to land-locked Nepal from India will be laid within a week, India’s Ambassador to Nepal Ranjit Rae said today.
During a programme organised here to mark India’s 69th Independence Day, Rae said construction of the pipeline will begin soon with the foundation being laid within a week.
The 40-kilometre-long pipeline will be laid between Raxaul town on the Indian side of the border and Amlekhgunj in southern Nepal.
Of the 40 kilometres, two kilometres of the laid pipeline would be in India and the remaining in Nepal. The estimated Rs 275-crore project would take three years to complete.
Indian Oil CorporationBSE -0.95 % (IOC) will provide Rs 200 crore for the project, while the remaining Rs 75 crore will be provided by Nepal Oil Corporation.
Nepal depends on India to meet all of its fuel needs. Petrol, diesel, domestic LPG and jet fuel (ATF) are currently trucked from IOC’s depot at Raxaul to Nepal.
The completion of the project would enable an interrupted supply of petroleum products to the Himalayan nation.
Rae said India wants to contribute to the development of Nepal as there is a consensus among Nepalese political parties to move jointly with India on the path of economic prosperity.
The recently signed Power Trade Agreement and Power Development Agreement between Nepal and India are testimony to this, he said.
Rae said peace and stability are essential for development and economic prosperity, and India wishes for the early promulgation of Nepal’s constitution.
In 2006, a 41-km oil pipeline from Raxaul to Amlekhgunj was proposed. The pipeline was to be funded 50:50 by IOCBSE -0.95 % and Nepal Oil Corp.
The project, however, never took off as Nepal refused to fund its share of cost. IOC has since agreed to foot a major part of the cost in exchange for Nepal committing to buy products for at least 15 years.
