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India and Nepal to sign pipeline agreement on 24 August

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World Pipelines,

India and Nepal are set to sign both a landmark and framework agreement next week.

The signings

The agreements will concern the 41 km cross-border petroleum pipeline from Amlekhgunj to Raxaul, which is expected to ease transportation and reduce the country’s oil tankers. Dharmendra Pradhan, the Indian Petroleum Minister, is said to be arriving in Nepal on 23 August for the signing the following day.

Recent approvals

Prime Minister Narendra Modi has also recently approved the signing of a MoU for the pipeline construction; decided through a meeting with the Indian cabinet.

Plans after the agreement

Once the framework agreement is approved, a business-to-business and operation modality agreement will be signed between the two oil companies – Nepal Oil Corporation and Indian Oil Corporation.

Jib Raj Koirala, Joint Secretary at the ministry stated: “We are all prepared for the signing of the much-awaited project.”

Edited from various sources, The Kathmandu Post, The Echo of India, The Economic Times, by Stephanie Roker

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