The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the signing of MoU between the India and Nepal for the construction of a petroleum products pipeline from Raxaul (India) to Amlekhgunj (Nepal).
Points to Note
- The MoU will promote bilateral cooperation in the oil and gas sector and secure long term supply of petroleum products to Nepal.
- It would help preserve the environment along the route and decongest the international border at Raxaul.
- The Indian Oil Corporation will bear a cost of Rs. 200 crore for the first phase of the project.
- There will be a long term contract of 15 years between the Indian Oil Corporation and the Nepal Oil Corporation.
Indian Oil Corporation
- Indian Oil Corporation is India’s largest commercial enterprise, with a sales turnover of Rs. 4,50,756 crore and profits of Rs. 5,273 crore for the year 2014-15.
- Indian Oil is ranked 119th among the world’s largest corporates (and first among Indian enterprises) in the prestigious Fortune‘Global 500’ listing for the year 2015.
- It has subsidiaries in Sri Lanka, Mauritius and the UAE.
- Indian Oil accounts for nearly half of India’s petroleum products market share.
- IndianOil has the largest captive plantation – covering 8,000 hectares – for bio-fuel production in India in the States of Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
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