India to Grant Rs. 15 Billion for Petroleum Pipeline and Fuel Storage Projects in Nepal

India has pledged a grant of approximately Rs. 15 billion for the construction of a new petroleum pipeline and a fuel storage facility in Nepal. The agreement, reached between Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) in New Delhi on Thursday, outlines the construction of two pipelines and storage facilities to improve fuel supply in Nepal.

As part of the deal, a new petroleum pipeline will be built from Siliguri, India, to Jhapa, Nepal, and the existing Amlekhgunj (Bara) pipeline will be extended to Chitwan. Additionally, the IOC will finance the construction of a fuel storage facility in Jhapa, while the NOC will invest Rs. 9.5 billion in a similar facility in Chitwan. The agreement was signed by NOC Managing Director Dr. Chandika Bhatta and IOC Managing Director Senthil Kumar, officially moving these projects into the implementation phase.

The new projects aim to streamline fuel supply, reduce transportation costs, and mitigate environmental pollution. The Siliguri-Jhapa pipeline will cater to eastern Nepal’s fuel needs, while the Amlekhgunj-Chitwan pipeline will support high-demand areas like Kathmandu and Pokhara. The project is expected to improve the quality, distribution, and management of petroleum products across Nepal.