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PM Modi inaugurates first cross-border pipeline in South Asia

Prime Minister Narendra Modi jointly inaugurated South Asia’s first cross-border pipeline to enhance the energy security of Nepal.

Sep 10, 2019 16:03 IST
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pal oil pipeline project inaugurated

Prime Minister Narendra Modi inaugurated the India-Nepal cross-border petroleum pipeline along with Nepal Prime Minister KP Sharma Oli through video conferencing on September 10, 2019.

The India-Nepal cross-border petroleum pipeline is South Asia’s first cross-border pipeline. The PMO called the project a symbol of India's close relations with Nepal.

India-Nepal cross-border petroleum pipeline will:

- Enhance the energy security of Nepal

- Ensure reduction in fuel prices by cutting down on transit costs substantially 

India-Nepal cross-border petroleum pipeline: Key Highlights

The oil pipeline will connect Motihari in India and Amlekhgunj in Nepal. The oil pipeline project was first proposed in 1996.

The Motihari- Amlekhgunj oil pipeline was expected to begin operations in mid-April 2019 but it got delayed due to permission required to cut trees in the Parsa National Park.

The 60 km-long pipeline is the first cross-border petroleum product pipeline in South Asia.

Through this pipeline, clean petroleum products weighing about 2 million metric ton will be provided to the people of Nepal every year at affordable rates.

Under India and Nepal’s agreement that has been in place since 1973, Indian tankers will carry the petroleum products from India to Nepal.

Background

India has invested around Rs 3.5 billion in the oil pipeline project. Indian PM Narendra Modi and Nepal PM KP Sharma Oli had jointly laid the foundation stone for the pipeline project at the Hyderabad House in New Delhi during Oli's visit to India in 2018.