KATHMANDU, OCTOBER 3
Nepal and India have signed a B2B Framework Agreement for the development of petroleum infrastructure in Nepal.
Executive Director of Nepal Oil Corporation (NOC), Dr. Chandika Prasad Bhatta, and Director of Indian Oil Corporation (IOC) Limited, Senthil Kumar, signed the agreement during a program held today. Indian Petroleum and Natural Gas Ministry Secretary, Pankaj Jain, and IOC Chair, V. Satish Kumar, were also present.
IOC described the agreement as a significant milestone in the India-Nepal energy partnership.
Under the B2B Framework Agreement, a 50-kilometer petroleum pipeline will be constructed from Siliguri, India, to Charaali, Jhapa. Additionally, a Smart Greenfield Terminal with a capacity of 18,900 kiloliters will be built at Charaali.
India will provide a grant for a 62-kilometer petroleum pipeline from Amlekhgunj to Lothar, Chitwan, where a Smart Greenfield Terminal with a 91,900-kiloliter capacity will be built by NOC with technical assistance from the Indian government. The total cost of the projects is estimated at Rs 15 billion.
The initial MoU for these projects was signed during former Prime Minister Pushpa Kamal Dahal's visit to India in May-June 2023.
