India and Nepal have signed an important bilateral agreement on petroleum pipeline construction on Thursday.
The agreement was signed by Nepal Oli Corporation (NOC) Executive Director Dr. Chandika Prasad Bhatta on behalf of Nepal and Indian Oli Corporation (IOC) Director Senthil Kumar amidst a ceremony on Thursday.
Posting an X message following the signing ceremony, IOC said, "Proud to strengthen the India-Nepal energy partnership through this B2B Framework Agreement between #IndianOil and Nepal Oil Corporation."
According to the agreement, a 50-km petroleum pipeline will be constructed from Siligudi of India to Charali of Nepal. Similarly, a Smart Greenfield Terminal with the capacity of 18,900 kiloliters of petroleum products will be built at Charali.
This collaboration paves the way for seamless energy connectivity, especially in hilly terrains, enhancing energy security for both nations, said the IOC expressing hope that it would further enhance the bilateral ties.
"This collaboration, in the presence of Secretary, MoP&NG, Mr. Pankaj Jain, will enhance energy security and optimize petroleum logistics, particularly for the hilly terrains. As Mr. Jain highlighted, "IndianOil’s pivotal role in these projects is commendable, and their timely execution will further strengthen ties between India and Nepal," reads the X message posted by the IOC.
The Government of India will provide a grant for the implementation of a project to build a 62-kilometer petroleum pipeline from Amlekhgunj to Lothar of Chitwan. Likewise, at Lothar, a Smart Greenfield Terminal with 91,900 kiloliters will be built by the NOC with the technical assistance of the Indian government. The total cost of these projects is worth Rs 15 billion.
Secretary at the Ministry of Petroleum and Natural Gas of India, Pankaj Jain, and IOC Chairman V Satish Kumar were present during the ceremony, the NOC has said.
The MoU in this regard was signed during former Prime Minister Pushpa Kamal Dahal's visit to India in May-June, 2023.
