Under an agreement between NOC and IOC, India would construct a 15 billion dollar petroleum pipeline.

The Indian government plans to construct a petroleum pipeline that will run from Amlekhganj to Lothar and from Siliguri, India, to Jhapa Charali, Nepal. On Thursday, Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) inked a deal to build a pipeline that will cost approximately 15 billion rupees.

The agreement was signed by Senthal Kumar, Director of Pipeline Project on behalf of IOC, and Chandika Bhatt, Managing Director of NOC. IOC President Satish Kumar was also present on the day of the agreement, as was Secretary of the Ministry of Petroleum and Natural Gas Pankaj Jain.

An agreement has been struck to develop a 50 km long petroleum pipeline from Siliguri in India to Charali in Jhapa, Nepal and a smart greenfield terminal with a capacity of 18,900 kiloliters at Charali in Jhapa with the subsidy of the Government of India.

With assistance from the Indian government, a 62-kilometer petroleum pipeline project spanning from Amlekhganj, Nepal, to Lothar, Chitwan, would be constructed. It is stated that a smart greenfield terminal with a capacity of 91,900 kiloliters will be erected at Lothar in Chitwan with the technical cooperation of the Government of India and the investment of Nepal Oil Corporation.

The Government of India will provide grant funding of around 15 billion rupees for the aforementioned projects. The second phase of the development of the petroleum pipeline was agreed to by Indian Prime Minister Narendra Modi and then-prime minister Pushpa Kamal Dahal on June 18, 2080.