Friday, May 15, 2009

Nepal and India to prepare DFR for oil pipeline construction

Nepal and India to prepare DFR for oil pipeline construction

Shirish B Pradhan 
Kathmandu, May 15 (PTI) Nepal and India have decided to prepare a Detailed Feasibility Report (DFR) to construct a 41 km long oil pipeline to smoothen the supply of petroleum products from Raxaul to Amlekhgunj, leading to reduction of transportation cost by at least 40 per cent.

The decision was made in a two-day meeting between a team of Indian Oil Corporation (IOC) led by R K Sharma and Nepal Oil Corporation (NOC) team led by Suresh Aggrawal in Kathmandu on Thursday.

"We have agreed to prepare the DFR on constructing and operating a petroleum pipeline system between Amlekhgunj and Raxaul by mid-July 2009 if every thing goes all right," Aggrawal said.

NOC currently imports around 100,000 kilolitre of various petroleum products from IOC.

If implemented, the project is expected to reduce fuel transportation cost by 40 per cent. Besides, it can generate additional revenue, reduce loss, theft and road deterioration, while making the supplies cleaner and cheaper.

Fuel shortages that hit Nepali markets frequently, are also likely to come to an end with the pipeline construction.

To implement the project, the two sides have agreed to set up a joint venture, which will have majority equity share of Nepal and a minority share of India, the NOC official said. PTI

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