World News | Nepal seeks assistance from India to build two more oil pipelines

KATHMANDU, September 2 (PTI) Nepal has sought technical support and grant assistance from India to build two more oil pipeline projects under an intergovernmental agreement.

With Indian assistance, a 69-kilometer-long oil pipeline has been put into operation between Motihari in Bihar and Amlekhgunj in Nepal’s Barra region. It was inaugurated on September 10, 2019 to supply Indian Oil Corporation (IOC) diesel to Nepal Petroleum.

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After the completion of the Motihari-Amlekhgunj pipeline, the Nepalese government is preparing to sign a G2G (government-to-government) agreement with India to build two more oil pipeline projects and has submitted relevant proposals to the Indian government, officials said. said here.

Nepal recently put forward two separate proposals, one for the construction of a 52km pipeline from Siliguri in West Bengal to Jappa, Nepal, and a 69km pipeline connecting Amlekhgunj in Nepal and Lothar in Chitawan district as The extension of the Motihari-Amlekhgunj pipeline, Urmila KC, Nepal’s Deputy Minister of Commerce, Industry and Supply, told PTI.

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“We are waiting for India’s approval to sign the MoU for the construction of the two pipeline projects,” she said, adding that the joint technical teams from Nepal and India have completed a detailed investigation of the two projects,” she said.

While the construction cost of the Siliguri-Jhapa pipeline is estimated at INR 2.88 billion, the cost of the Amlekhgunj-Chitawan pipeline is estimated at INR 1.28 billion.

“We have asked India to provide technical support and grant assistance for the construction of the pipeline project,” Ulmira said.

She said the proposal also included the construction of 40,000 kilolitre storage tanks each in Jappa and Chitawan with Indian assistance.

“We are also proposing to build two storage tanks with a capacity of 41,000 kilolitres at Amlekhgunj, one with the assistance of India and the other by the Nepalese government itself,” Ulmira said.

Once completed, the pipelines will supply fuel for planes and other petroleum products in Nepal, significantly reducing fuel transportation costs, she said.

(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)