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Nepal, India sign B2B Framework Agreement on petroleum infrastructure



Kathmandu, Oct 3: Nepal and India have reached the B2B Framework Agreement regarding the development of petroleum infrastructure in Nepal.

Executive Director of Nepal Oil Corporation (NOC), Dr Chandika Prasad Bhatta, and Director of Indian Oil Corporation (IOC) Limited, Senthil Kumar, signed the Agreement amidst a programme here today.

Secretary at the Indian Petroleum and Natural Gas Ministry, Pankaj Jain, and IOC Chair V Satish Kumar were present on the occasion.

The IOC on its social site described the Agreement as a key milestone in the India-Nepal energy partnership.

As per the B2B Framework Agreement, a 50-kilometer petroleum pipeline from Siliguri of India to Charaali of Jhapa will be built. Similarly, a Smart Greenfield Terminal with 18,900 kiloliters will be constructed at Charali.

The Government of India will provide a grant for the implementation of a project to build a 62-kilometer petroleum pipeline from Amlekhgunj to Lothar of Chitwan. Likewise, at Lothar, a Smart Greenfield Terminal with 91,900 kiloliters will be built by the NOC with the technical assistance of the Indian government. The total cost of these projects is worth Rs 15 billion.

The MoU in this regard was signed during former Prime Minister Pushpa Kamal Dahal’s visit to India in May-June, 2023.