Prime Minister, Shri Narendra Modi on AUGUST 12, 2015 gave its approval for the signing of a Memorandum of Understanding (MoU) between the Government of India and the Government of Nepal for the construction of a petroleum products pipeline.
India MoU with Nepal:
- The pipeline will be constructed from Raxaul of India to Amlekhgunj of Nepal and re-engineering of Amlekhgunj Depot and allied facilities.
- This approval is made on the visit of the Prime Minister to Nepal on 3-4th August, 2014 for the construction of this petroleum products pipeline.
- Bearing in mind for close friendly relations between the two countries and their people, this was agreed to by the Indian Government.
- The MoU will promote bilateral cooperation in the oil and gas sector and secure long term supply of petroleum products to Nepal. It would help to preserve the environment along the route and decongest the international border at Raxaul.
- The construction of a petroleum products pipeline project will be completed in two phases.
- In the first phase, a petroleum products pipeline from Raxaul in India to Amlekhgunj in Nepal would be constructed.
- The Indian Oil Corporation will bear a cost of Rs. 200 crore for the first phase of the project.
- There will be a long term contract of 15 years between the Indian Oil Corporation and the Nepal Oil Corporation.
Indian Oil Corporation:
• Indian Oil corporation Ltd is India’s largest company by sales with a turnover of Rs 4,37,526 crore and profits of Rs 5,273 crore for the year 2014-2015.
• Indian Oil has the largest captive plantation – covering 8,000 hectares – for bio-fuel production in India in the States of Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
• Indian Oil is ranked 119th among the world’s largest corporate (and first among Indian enterprises) in the prestigious Fortune Global 500 listing for the year 2015.
• It has subsidiaries in Sri Lanka, Mauritius and the UAE.