The Indian Government has said that it has signed a MOU with Nepal for the construction of a 41-km Amlekhgunj-Raxaul petroleum pipeline which is expected to be completed within 30 months, media reported.
As per reports, Petroleum and Natural Gas Minister Pradhan and his Nepalese counterpart Sunil Bahadur Thapa inked the Memorandum of Understanding for the construction of the pipeline from Raxaul (India) to Amlekhgunj (Nepal) and re-engineering the Amlekhgunj Depot and allied facilities.
Commenting on the development, Oil Minister Dharmendra Pradhan told the media, "Indian Oil Corporation is capable of executing the project and we expect it will be completed before the set deadline of 30 months."
"On behalf of the Indian government, the IOC will construct the pipeline and re-engineer Amlekhgunj depot and allied facilities. The project will be completed in two phases. In the first phase, the pipeline would be constructed," he added.
As per reports, the IOC will bear the cost of Rs.200 crore for the first phase. A long-term contract between the IOC and Nepal Oil Corporation will be in place for the project.