Motihari-Amlekhgunj petroleum pipeline inaugurated by PM of Nepal and India; estimated inflow of 4000 kiloliters per day estimated

Much awaited, cross border petroleum pipeline from India’s Motihari to Amlekhgunj, was inaugurated today by the PMs of both countries together.

From Sighdurbar, PM Oli and from Delhi PM Modi jointly inaugurated the pipeline through video conference. Upon inauguration, the petroleum products have started flowing to Amlekhgunj. This pipeline is South Asia’s first cross border project.

In the initial phase, the pipeline will bring in diesel while eventually it will bring in petrol and kerosene. The length of the pipeline is 69.2 km out of which 36.2 km is from Nepal’s side and 33 km is from India’s side.

The project has enabled inflow of almost 4000 kiloliters of petroleum products per day. The use of this pipeline is expected to save billions in shipping cost. Annually, around Rs.2 Arba will be saved in shipping of petroleum products. The minimization of petroleum shipping cost will result in fall in the consumer price of the product. From today itself the prices of diesel, petrol and kerosene have been reduced by Rs.2 per liter. 70% of total diesel consumed in Nepal has been supplied by Amlekhgunj.

The agreement for the pipeline between Nepal Oil Corporation and Indian Oil Corporation was made in the year 2004. Due to various reasons this project was delayed for over a decade. In August 2015, Minister of Commerce and Supplies Mr. Sunil bahadur Thapa and his Indian counterpart Mr. Dharmendra Pradhan agreed to begin the construction of the project. Both the Nepalese and Indian governments were positive about the project.

In the PM’s tour of India, from New Delhi PM Oli and his Indian counterpart PM Modi had jointly established the project. A total of INR 2.75 Arba has been invested in the project.