In a move to solidify Indo-Nepal trade-transit relations, Kathmandu requests New Delhi to consider a proposal to lay a new fuel line from Siliguri to Jhapa
New Delhi: Prime Minister Narendra Modi-led government’s fuel diplomacy seems to have scored another win for the nation. While celebrating the success of establishing the first-ever cross-border petroleum products pipeline with Nepal, officials in New Delhi are now working to layout another fuel pipeline with Kathmandu.
Last week, in the first meeting of India-Nepal Joint Working Group (JWG) on Petroleum and Gas, officials from Kathmandu requested New Delhi to consider the possibilities of a second fuel pipeline between the two nations.
The request comes five months after the two governments inaugurated the first cross-country petroleum pipeline in September 2019, which is also a first of its kind fuel line in the South Asia region. The 69-kilometer-long pipeline, which pumps fuel from the Barauni refinery in Bihar to Amlekhgunj in south-east Nepal, was inaugurated by Prime Minister Narendra Modi along with his Nepalese counterpart KP Sharma Oli via video conferencing.
According to sources, on 13 January, the Nepalese delegation-led by Joint Secretary Dhruva Ghimire of the Nepalese Ministry of Industry, Commerce, and Supplies, tabled a proposal to consider laying a second cross-country petroleum pipeline stretching from Siliguri (Assam) to Jhapa (Eastern Nepal).
“During the meeting, we requested the Indian officials to conduct a feasibility study about the proposed Siliguri-Jhapa cross-country petroleum pipeline,” a senior official from the Nepalese delegation told TheNews21.
“The plan for this route (Siliguri – Jhapa) was proposed as the cost of transporting fuel from Biratnagar to Barauni was proving very expensive for the government (Nepal). The first petroleum pipeline has been a big success for both the nations, and we hope that India gives a positive response to the second one as well,” the official said.
The representative from the Nepal Oil Corporation Limited (NOCL) said that Kathmandu imported over 46 million liters of diesel from New Delhi within a month’s time from the newly inaugurated pipeline. “Our engineers have been monitoring the pipeline, since the time it became operational and there has not been a single leak so far,” he claimed.
Both New Delhi and Kathmandu have agreed that the Indian Oil Corporation (IOC) would assess the feasibility, based on a proposal to be submitted by the NOCL.
The cross-country project has brought the two Himalayan neighbors closer economically and strategically. The Bharatiya Janata Party (BJP)-led government’s fuel diplomacy has also cemented ties between India and Nepal, in face of major inroads made by China.
Nepal Raises Issue of Fuel Tanker
According to a senior government official, the Nepalese delegation raised the issue over the restrictions levied by the Indian government on fuel tankers from Kathmandu. In their appeal the officials requested New Delhi to remove the restrictions barring liquefied petroleum fuel tankers owned by Nepali traders from going to India to bring fuel.
“The issue was raised, due to the pressure mounted on the government to initiate dialogue with India, by these traders,” the official said.
Taking cognizance of the concerns expressed by the delegation, authorities from the Ministry of Petroleum and Natural Gas reportedly assured the Nepali Embassy in New Delhi of resolving the issue in the next two months.
PM Oli Sees Red on Third Fuel Line
In what comes as a surprise, Nepalese PM Oli has reportedly opposed a proposal to float a third fuel pipeline between the two countries.
According to reports, the NOCL has allegedly withdrawn its proposal to open a new pipeline from Motihari in India to Chitwan in Nepal for the transport of liquified petroleum gas. Bagging triumph in its first-ever international fuel line project (Motihari to Amalekhgunj), the NOCL had floated the proposal to the Prime Minister’s Office (PMO), which was also seconded by New Delhi.
However, in a major turn of events, PM Oli opposed the plan reportedly claiming that his government was preparing its own alternative to replace the cooking gas. Thus, forcing the NOCL to drop the plan. Stating that his government has plans to promote electricity production in Nepal, the PMO reportedly told the NOCL officials to focus on the transport and storage of petrol and diesel only.
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