India and Nepal on 24th August 2015 decided to invest Rs 200 crore on a pipeline for supplying petroproducts to the Himalayan country.The agreement was signed by oil minister Dharmendra Pradhan and Nepal’s commerce and supplies minister Sunil Bahadur Thapa in Kathmandu. This would be the first oil pipeline project between two countries in the SAARC region. India’s flagship refiner IndianOil would fund and construct the pipeline. In return for the funding, Nepal has given commitment to buy products from IndianOil for at least 15 years.
Points to Remember:
- Only 2 km of the pipeline would be in India and 39 km in Nepal.
- IndianOil would supply petrol, diesel and kerosene.
- Nepal Oil would spend Rs 75 crore on additional facilities.
- IOC will take 30 months to complete the project after receiving all clearances from the Nepal government.
About SAARC
- The South Asian Association for Regional Cooperation (SAARC) is an economic and geopolitical organisation of eight countriesthat are primarily located in South Asia or the Indian subcontinent
- The SAARC Secretariat is based in Kathmandu, Nepal.
- Members: 8 members and 9 observers
- Secretary General: Arjun Bahadur Thapa
- Establishment: 8 December 1985.
- Language : English
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