India, Nepal to Start Oil Pipeline Construction

India, Nepal to Start Oil Pipeline ConstructionIndia, Nepal to Start Oil Pipeline Construction

The foundation of a cross-border pipeline to pump oil products like gasoline and diesel to landlocked Nepal from India will be laid within a week, India’s Ambassador to Nepal Ranjit Rae announced.

During a program organized in Kathmandu to mark India’s 69th Independence Day, Rae said construction of the pipeline will begin soon with the foundation being laid within a week, Press Trust of India reported.

The 40-kilometer-long pipeline will be laid between Raxaul town on the Indian side of the border and Amlekhgunj in southern Nepal. Of the 40 kilometers, two kilometers of the laid pipeline would be in India and the remaining in Nepal. The estimated $42 million project would take three years to complete.

Indian Oil Corporation will provide $31 million for the project, while the remaining $11 million will be provided by Nepal Oil Corporation. Nepal depends on India to meet all its fuel needs.

Gasoline, diesel, domestic LPG and jet fuel are currently trucked from IOC’s depot at Raxaul to Nepal.

The completion of the project would enable an uninterrupted supply of oil 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.