The Ministry of Commerce and Supply said that the internal ground work in connection with signing a bilateral agreement to expedite the construction of 41-km long pipeline from Raxaul, India to Amlekhgunj, Nepal.

The Ministry has sent a draft of Memorandum of Understanding on assistance to be signed between the two countries for the construction of pipeline (39-km in Nepal and two kilometer in India) to give it a final shape. Once the MoU signed following the Cabinet approval, the construction works will commence.

Both the countries have placed high emphasis on the project construction as it was agreed in course of Indian Prime Minister Narendra Modi's Nepal visit last year.

Ministry Spokesperson Shambhu Prasad Ghimire said that the primary cost of the pipeline construction is estimated to be around Rs 4.40 billion. Of the total construction cost, India would bear Rs 3.20 billion and Nepal would grant aid of Rs 1.20 billion to Nepal Oil Corporation. The cost will also be spent to upgrade petroleum depot in Amlekhgunj.

The supply of petroleum products would be eased in Nepal and expenses ranging from Rs 550 to Rs 600 million incurred on transportation and technical works would be saved following the construction of the pipeline, Spokesperson Ghimire told RSS.

Everyday more than 250 tankers are importing petroleum products to different parts of Nepal through various checkpoints of India including Amlekhgunj. With pipeline coming into operation, the tankers would import petro products via Amlekhgunj. With this the current problem of traffic congestion would also be averted, the NOC source said. RSS