The governments of India and Nepal have signed a memorandum of understanding for construction of a pipeline to carry oil products from an Indian Oil Corp. depot at Raxaul, India, to Amlekhgunj, Nepal.
The agreement also covers reengineering of a depot at Amlekhgunj.
About 39 km of the 41-km pipeline would be in Nepal. The agreement also covers reengineering of the depot at Amlekhgunj.
Trucks now carry products from Raxaul and Amlekhgunj by truck, causing congestion at the border.
The project had been proposed in 2006 as a 50-50 venture between IOC and Nepal Oil Corp., but Nepal decline to fund its share, according to an IOC statement.
Under the new agreement, IOC would fund the $30-million pipeline-construction phase of the project.