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India-Nepal Oil Pipeline to Enhance Regional Connectivity

Nickeled & Dimed


Richa Sekhani examines the Oil Pipeline Project involving India and Nepal and explores its potential to enhance Nepal’s economy, connectivity and regional cooperation.

The South Asian region has remained the least integrated in the world and has not been able to optimally utilise its existing potential because of fragmented transportation and communication systems in the region. To improve the connectivity in the region, a landmark agreement between the state-owned Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) to lay a 41 Km (2 km in India and 39 km in Nepal) oil pipeline for the construction of Raxaul-Amlekhgunj petroleum product pipeline was signed on August 25, 2015 in Kathmandu. The project, in line with Indian Prime Minister Narendra Modi’s vision for enhanced regional connectivity within the SAARC, is the first trans-national petroleum pipeline. It has an annual capacity of 1.3 million tonnes, and is designed to supply…

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