India, Nepal ink MoU on Raxaul-Amlekhgunj oil pipeline

India and Nepal have inked a Memorandum of Understanding (MoU) for the construction of Raxaul-Amlekhgunj oil pipeline.
This pipeline will be the first of its kind project between two neighbouring countries in the SAARC region in the oil and gas sector.
The MoU was signed by Union Oil Minister Dharmendra Pradhan and his Nepali counterpart Sunil Bahadur Thapa (Nepal’s commerce and supplies minister) in Kathmandu.

About Raxaul-Amlekhgunj pipeline

• It will be constructed by Indian Oil Corporation (IOC) on behalf of Indian Government at a cost of 200 crore rupees.
• It will connect supply depot at Raxaul (Bihar) in India to Nepal Oil Corporation’s Amlekhgunj receiving terminal. It will also include re-engineering and construction of the Amlekhgunj Depot and allied facilities.
• This pipeline will cover total distance of 41 km, off which only 2 km will be in India and 39 km in Nepal.
• Nepal government will buy petroleum products from IOC for at least 15 years in return for the funding this pipeline.
• Seeks to promote bilateral cooperation in the oil and gas sector between both neighbouring countries.
• Secure long term supply of petroleum products including petrol, diesel and kerosene to the Himalayan country as it solely depends on India for all of its petrofuel requirements worth some 41 billion dollars.

Month: Current Affairs - August, 2015