Indian Oil Corporation (IOC) has been positive to build two pipelines and one terminal worth Rs 17 billion with subsidy. This agreement was reached in a discussion between IOC and Nepal Oil Corporation's senior officials last Tuesday at IOC's central office in Mumbai.

Under the leadership of the Corporation's Executive Director Chandika Prasad Bhatt, a team including Deputy Executive Director Deepak Baral, Deputy Executive Director Virendra Goit, Deputy Director Manoj Kumar Thakur reached the IOC for a formal meeting. 

The corporation's team made the petroleum pipeline the main issue and met with senior officials including Sanjay Parasar, Executive Director of IOC Supply. In that process, it is said that an agreement has been reached that two pipelines and one terminal will be built with subsidies. "During the meeting with the IOC representative, we proposed to build the petroleum pipeline with a grant. IOC is positive to build two pipelines and one terminal," said Manoj Thakur, spokesperson of the corporation, "There has been a commitment from IOC to support and take initiatives in the taluk ministry." The team concluded that it would cost 17 billion to build two pipelines and one greenfield terminal (storage house). According to Thakur, according to the cost expenditure, 4.38 billion rupees (274 crore rupees) for construction of Amlekhganj-Chitwan petroleum pipeline, 4.6 billion rupees (288 crore rupees) for construction of Siliguri-Jhapa petroleum pipeline and 8.3 billion rupees (502 crore rupees) for construction of greenfield terminal at Charali. ) is mentioned. Thus, it is said that the cost of these three projects will be around 17 billion 1 crore.

The conclusion of the study is that it will cost 9 billion 88 crores (618 crores) to build a greenfield terminal at Lothar in Chitwan. In Lothar, the corporation itself will have to invest. An agreement was also reached regarding this project during Prime Minister Pushpa Kamal Dahal's visit to India last May. An agreement was reached to build two pipelines and one greenfield terminal with Indian investment. For that purpose, in the presence of Prime Minister Dahal and Indian counterpart Narendra Modi, the then Industry, Commerce and Supply Minister Ramesh Rizal and Indian Petroleum Minister Hardeep Singh Puri exchanged a memorandum of understanding.

An agreement was reached to build a petroleum pipeline and greenfield terminal from Siliguri in India to Jhapa in Nepal, and to extend the petroleum pipeline from Motihari to Amlekhganj to Lothar in Chitwan. There was confusion when it was not decided whether to make it as a grant or a loan. According to the memorandum of understanding, all the three projects will be completed within 6 months after the construction work started, but no conclusion could be reached about the modality. 

Corporation executive director Bhatt said that the discussion was positive and that the project is ready to be built with the IOC grant. He said that if a ministerial meeting between the two countries is scheduled soon, reconciliation will be done. The discussion with the IOC was very positive. "IOC is positive to build the pipeline project with subsidy," said Bhatt. Initiatives are being taken in the ministry for that. He said that the meeting of the meeting will be decided by the joint working group, which will be the joint secretary coordinator of the two countries. 

The discussion between the IOC and the corporation has also discussed the diversification of business. Under this, IOC is going to help in the business of bitumen. Now the private sector is doing business. Questions are being raised about the quality," said spokesperson Thakur, "IOC has agreed to the proposal to purchase bitumen from IOC and sell it through a distributor in Nepal." 

It is said that standards will be made before trading bitumen. For that, standards will be made in collaboration with the Ministry of Physical Infrastructure and Transport. The quality of bitumen sold by IOC is good. It is also expensive. But now it is available cheaply in the market," he said, "so we cannot compete with the bitumen sold by the private sector in Nepal. For that, it has been agreed to make and sell bitumen standards. Apart from this, there has also been a discussion regarding the sale of gasoline mixed with ethanol. Up to 20 percent ethanol can be added to gasoline. IOC has been selling adulterated up to 12 percent. Thakur said that there is an agreement to use the same technology in Nepal as well. "It has been agreed that the technical team of the IOC will come and make a presentation on this matter," he said.

The IOC and the corporation have also had positive discussions on two new projects — natural gas and cooking LP gas pipelines. Corporation executive director Bhatt said that it has also been proposed to build the Motihari-Pathalaiya-Sarlahi LP gas pipeline. He said that there was an agreement to finalize the gas pipeline after further discussion. The corporation has 16 bigha of land in Sarlahi, the corporation proposed it as there is a possibility of gas pipeline there. At present, gas is transported from Raxaul to Muzaffarpur by bullet from 140 km. IOC has already extended the gas pipeline up to Motihari. 

Gas transportation from Bullet is costing about 6 billion rupees annually. According to the officials of the corporation, billions of rupees will be avoided by building the pipeline. The natural gas pipeline and the opening of a fertilizer factory were also discussed. We have requested the IOC to build a natural pipeline and operate a fertilizer factory in joint venture," said Bhatt, adding that they are also ready to support the proposal to build a pipeline from Gorakhpur to Bhairahawa. They have said that they will inform after further discussion with the related agencies.