Petroleum pipeline likely to boost Indo-Nepal relations

Prime Minister Narendra Modi and his Nepalese counterpart KP Sharma Oli on Saturday witnessed the ground-breaking ceremony of the Motihari-Amlekhgunj cross-border petroleum products pipeline at Motihari district of Bihar.

The move is likely to provide an alternative means of cross border fuel supply instead of transporting it by road.

The two prime ministers also underlined the need for expeditious implementation of bilateral projects in Nepal, and to reinvigorate the existing bilateral mechanisms to promote cooperative agenda across diverse spheres

Oli said he has also conveyed to Modi Nepal’s desire to see an early realisation of the open market provision of the bilateral power trade agreement, which was concluded between the two sides in 2014.

An IOCL statement said, the Motihari-Amlekhgunj Pipeline project was approved by IndianOil at a total cost of Rs. 324 crore in September 2015. The 69-km-long pipeline project involves laying of a 10.75-inch diameter cross-country pipeline from Motihari in Bihar to Amlekhganj in Nepal, with pumping facilities at Motihari.

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The design throughput capacity of the pipeline is 2.0 million tonnes per annum. Out of the total length, 32.7 km of pipeline will be laid in the Indian territory and 36.2 km will be laid in Nepal territory.

The schedule of completion of the project is 30 months from the date of receipt of statutory clearances and the work is likely to be completed by March 2019.

At present, Indian Oil Corporation Limited (IndianOil) supplies the complete requirements of major petroleum products of Nepal from its Barauni Refinery and Raxaul depot in Bihar to Amlekhganj depot of Nepal Oil Corporation Limited (NOC), the national oil company of Nepal.

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An IOCL statement said the supply of major petroleum products like motor spirit, superior kerosene oil, high speed diesel, LPG and aviation turbine fuel by tank-trucks and tankers through road movement is affected by frequent road blockade at the Indo-Nepal border.

Modi and Oli held wide-ranging talks and vowed to step up overall engagement and take the relationship to newer heights on the basis of “equality, mutual trust and respect”

After the delegation-level talks, Modi reportedly said India will always stand by Nepal in its quest for all-round growth, asserting that deeper cooperation between the two neighbours will strengthen democracy in Nepal

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Oli, who is seen as favouring a closer relationship with China, said his government wants to build a strong edifice of “trust-based” relationship between the two nations

“Relations between neighbours are different from those of others. Neighbourhood realities make peaceful coexistence, based on the principles of equality, justice, mutual respect and benefits a necessity for shared destiny,” PTI quoted Oli as saying.

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