India To Build Petroleum Pipeline To Nepal

By Yuba Nath Lamsal KATHMANDU, Aug 18 (Bernama) -- India will build a 41-kilometre (KM) petroleum pipeline from its border of Raxaul to Nepal's main storage site at Amlekhgunj to facilitate the smooth supply of petroleum products and control leakage. A spokesperson at Nepal's Commerce Ministry, Jibraj Pokhrel, said both countries would sign the agreement on Aug 24, 2015. India's Commerce Secretary, Dharmaendra Pradhan, will sign for India. "We are prepared for the signing of the agreement to start the much-awaited pipeline project," he said. Nepal and India have been talking about the construction of the cross-border pipeline since 1996. Currently, India's state-owned Indian Oil Corp (OIC) supplies all petroleum products to Nepal which is distributed in Nepal by Nepal Oil Corp. The pipeline project had hit a snag as India had asked Nepal to sign an agreement to ensure it will continue to import petroleum products solely from India for at least 15 years. Nepal insisted it will continue with the present arrangement under which both the countries would renew the agreement every five years. The dispute was resolved during Indian Prime Minister Narendra Modi's visit to Nepal in August last year where he pledged to build the pipeline. The Indian government recently decided to build the pipeline even under the present arrangement. India plans to extend the pipeline to Kathmandu in the second phase after the completion of the Raxaul-Amlekhgunj pipeline project. The first phase is estimated to cost about US$12 million and is expected to be completed within 30 months. Nepal and India share 1,800km open border across which people of both the countries travel freely without passport and visa. --BERNAMA