New Delhi, Aug 12 (IANS) The union cabinet on Wednesday approved signing of a memorandum of understanding (MoU) between India and Nepal for constructing a petroleum products pipeline from Raxaul in India to Amlekhgunj in Nepal, as well as the re-engineering of Amlekhgunj depot.
“The MoU will promote bilateral cooperation in the oil and gas sector and secure long term supply of petroleum products to Nepal,” a cabinet communique said.
“It would help preserve the environment along the route and decongest the international border at Raxaul,” the statement added.
Oil marketer Indian Oil Corp will undertake the project, making an expenditure of Rs.200 crore for the first phase.
“There will be a long term contract of 15 years (initial contract for five years extendable for two terms of five years each) between the Indian Oil Corporation and the Nepal Oil Corporation,” the statement said.