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Motihari-Amlekhguni oil pipeline to begin operation in August 2019

Friday, 19 Jul 2019
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The governments of India and Nepal have successfully concluded the 'testing transfer' of the Motihari-Amlekhguni oil pipeline. The project worth Rs 325 crore is set to start commercial operation in August 2019.

Along with reducing the huge transportation cost for the landlocked country, the commercial operation of the oil project will also ensure reduction in fuel prices. The Motihari-Amlekhgunj oil pipeline project was first proposed in 1996. The two governments had inked an agreement to execute the project in August 2015.

However, the project construction was delayed following the 2015 earthquake and supply obstruction along the southern border. The project construction works finally began in April 2019 with the mandate to complete it within 30 months.

The pipeline will help in tackling the oil storage problem in Nepal and doing away with transportation of petroleum products through tankers. Though the initial cost of the project was estimated to be Rs 275 crore, where the Indian government pumped Rs 200 crore. The project cost escalated due to delay.

As the project has been completed and is awaiting its formal inauguration, Nepal will officially start fuel trade with India via the pipeline.

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