Kathmandu, Aug. 24: An agreement on the Raxaul-Amlekhgunj pipeline project has been signed between Nepal and India in order to help ease the supply of petroleum products.
Minister for Commerce and Supplies Sunil Bahadur Thapa and Indian Minister of State for Petroleum and Natural Gas Dharmendra Pradhan signed the agreement at a function held in the capital today.
The pipeline from Raxaul to Amlekhgunj spreading over 41 kilometers is expected to cost Rs. 4.40 billion. It is a joint investment project between the two countries including Rs. 3.2 billion from the Indian side and Rs. 1.2 billion from Nepal.
Upon completion, the pipeline will help reduce transportation cost by around Rs. 700 million annually and also ease traffic jam due to oil tanker trucks in the border area, according to Nepal Oil Corporation.
Speaking after the agreement signing ceremony, Minister Thapa said the project in the pipeline for 20 years has finally been realized and expressed the confidence that it would be completed before the estimated deadline of 30 months. â€œIt will not only ease fuel supplies but also reduce its costâ€, he said.
Indian Minister of State Mr Pradhan said the project was a priority of both the governments, with Indian Prime Minister Narendra Modiâ€™s Nepal visit playing an instrumental role in realizing the agreement that has been signed today.