IOC to lay network between Raxaul and Amlekhganj
In a major step towards strengthening the oil and gas infrastructure of Nepal, the Centre has decided to set up an oil pipeline from Raxaul in Bihar to Amlekhganj in the Himalayan kingdom. The pipeline which is to be constructed by Indian Oil Corporation (IOC) will be an environment-friendly initiative, which will replace the current arrangement where oil is supplied through hundreds of trucks plying to that nation on a daily basis.
According to sources familiar with the developments, Prime Minister Narendra Modi during his visit to Nepal on August 3-4 had announced that India will help lay pipelines in the Himalayan nation, and the 43 km long Raxaul-Amlekhganj pipeline has been proposed subsequently to help transport oil there.
A delegation of officials from the IOC had visited Nepal last month and held technical as well as administrative discussions with Nepal Oil Corporation (NOC) and other related departments. However, the IOC delegation, sources informed, had gone on a preliminary level visit to assess the conditions.
As far as funding of the project is concerned, sources in the know told The Pioneer that this is something which is yet to be finalised as the project is at a very preliminary stage.
At the same time, they pointed out that financing of the project will have to be discussed between New Delhi and Kathmandu. So far there has been no discussion between the Governments of the two nations on the funding of the project since Modi’s visit to Nepal.
Modi during his two-day stay in the neighbouring country, had announced a $1 billion credit to Nepal. There are indications that the pipeline project could be funded through the credit line.
The need for laying a pipeline through Raxaul (in Bihar) to Amlekhganj in Nepal was felt as a more energy efficient mode of transporting oil to that country, as against sending the commodity through several convoys of trucks which on a daily basis transport oil, diesel as well as cooking gas to the Himalayan kingdom. Nepal is dependent on India for meeting its fuel requirements.
The Petroleum Ministry in fact has highlighted the laying of the pipeline as one of the initiatives taken by it during the first 100 days of the NDA Government.
Nepal Commerce Minister Sunil Bahadur Thapa in fact had discussed the issue of laying the pipeline during his meeting with Petroleum Minister Dharmendra Pradhan in the national capital on July 30.
The pipeline on the same route had been proposed earlier in 2006, however at that time it could not be finalised. Both IOC and NOC had decided to fund it on a 50:50 basis.
Thapa, it is learnt, had requested Pradhan to revisit the project, during their meeting. Subsequently Modi during his visit to Nepal, revived it. Sources said that the NDA Government is keen to expedite the project.