Nepal Seeks India's Assistance To Construct Two More Petroleum Pipelines Under Govt-To-Govt Agreement

Kathmandu (PTI) Nepal has sought India's technical support and grant assistance to construct two more petroleum pipeline projects under government-to-government agreement.

A 69-km-long petroleum pipeline between Motihari in Bihar and Amlekhgunj in Nepal's Bara district constructed with India's assistance is already in operation. It was inaugurated on September 10, 2019 and is being used for supplying diesel from Indian Oil Corporation (IOC) to Nepal Oil Corporation (NOC).

After the construction of the Motihari-Amlekhgunj pipeline, the Nepal government has prepared to enter into a G2G (Government-to-Government) agreement with India to construct two more petroleum pipeline projects and has forwarded proposals to the Indian government in this connection, officials here said.

Nepal has recently forwarded two separate proposals, one for the construction of 52 km pipeline from Siliguri in West Bengal to Jhapa in Nepal and another 69 km pipeline connecting Amlekhgunj to Lothar in Chitawan district, both within Nepal, as an extension of Motihari-Amlekhgunj pipeline, Urmila K C, Under Secretary at Nepal's Ministry of Commerce, Industry and Supplies, told PTI.

'We are waiting for India's approval for signing the MoUs for the construction of the two pipeline projects, she said, adding that detailed surveys of both the projects have already been completed by a joint technical team from Nepal and India,' she said.

While the cost for construction of Siliguri-Jhapa pipeline is estimated to be INR 288 crore, the Amlekhgunj-Chitawan pipeline is estimated to cost INR 128 crore.

'We have asked India for both technical support as well as grant assistance for the construction of the pipeline projects,' Urmila said.

The proposal also includes construction of a 40,000 kilolitre storage tank in Jhapa and a 1,00,000 kl capacity storage tank in Chitawan with India's assistance, she said.

'We have also proposed two storage tanks having a capacity of 41,000 kl each in Amlekhgunj, one to be constructed with India's assistance and the other by the Nepal government itself,' Urmila said.

Once completed, these pipelines will supply fuel for aircraft and other petroleum products to Nepal, substantially reducing fuel transport cost, she said.

According to a report in My Republica news website, after the pipeline built up to Amlekhgunj did not meet the demand for petroleum products sold in Nepal, the NOC has taken forward the Siliguri-Jhapa project as the second pipeline project. The modality of investment and construction will be decided in the G2G meeting.

The Siliguri-Jhapa pipeline will be about 50 km long. Of the total length of the pipeline, about 35 km is on the Indian territory and 15 km on the Nepali territory.

Quoting Radhika Aryal, Joint Secretary of the Ministry of Industry, Commerce and Supplies, the report said the process of negotiating with India on the construction of the pipelines has progressed. An agreement will be reached after finalising the draft from both sides.

(This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.)