India's 17 billion petroleum project in confusion

Meanwhile, there have been four discussions between Nepal Oil Corporation and Indian Oil Corporation (IOC). Confusion about the project has increased when it was not decided whether to make the project with a grant or a loan in four discussions.

In the agreement under GTOG, the investment of IOC in the project is stated, it consists of grant and loan investment. Our understanding is that the IOC will build it with a grant,' said Gajendra Kumar Thakur, spokesperson of the Ministry of Industry, Commerce and Supply. We cannot borrow. Meanwhile, the IOC and the corporation have held talks four times, but the IOC's understanding is concessional loans. We have called grants.'

Last May, during Prime Minister Pushpa Kamal Dahal's visit to India, an agreement was reached to build two pipelines and one green field terminal (storage house) with Indian investment. In the presence of Prime Minister Dahal and Indian counterpart Narendra Modi, Minister of Industry, Commerce and Supply Ramesh Rizal and Indian Petroleum Minister Hardeep Singh Puri exchanged the MoU. The memorandum mentions the construction of a petroleum pipeline and a green field terminal from Siliguri in India to Jhapa in Nepal.

An agreement has been reached to extend the existing petroleum pipeline from Motihari to Amlekhganj to Lothar in Chitwan. According to the study conducted by the joint team of Indian Oil Corporation and Nepal Oil Corporation in December 2020, it was concluded that the cost of building two pipelines and one terminal would be 17 billion, according to Manoj Thakur, the spokesperson of the corporation. According to the cost, construction of Amlekhganj-Chitwan Petroleum Pipeline will cost 4.38 billion rupees (274 crore rupees), construction of Siliguri-Jhapa Petroleum Pipeline will cost 4.6 billion rupees (288 crore rupees), construction of greenfield terminal at Charali will cost 8.3 billion rupees (502 crore rupees). is mentioned. Thus, the cost of these three projects will be around 17 billion 1 crore. It is mentioned that it will cost 9 billion 88 crores (618 crores) to build a greenfield terminal at Lothar in Chitwan. The corporation itself has to invest in Lothar. The cost of all these projects is expected to increase by at least 10 percent. According to the agreement, all the three projects will be completed within 6 months after the construction work has started.

After the MoU was signed in May, the BTUB committee was formed in June. The IOC and the corporation have been discussing BTB several times. The discussion is stuck on the modality of investment. Pipeline and greenfield terminal construction grant or loan investment is not clear," said Thakur, the spokesperson of the corporation, "It was said to be finalized in 6 months, but it was not completed in that time. The matter of investment has not been decided yet.'

In the meantime, the executive director of the corporation changed. The government also changed. And the Minister of Industry, Commerce and Supply also changed. The then Industries Minister Ramesh Rizal signed the MoU in this regard. Currently, the Ministry of Industry, Commerce and Supply is held by Damodar Bhandari. Although Minister Bhandari said that the good work done by the then minister was within the government's policy, the executive director and the corporation officials said that the change of government had some effect.

'The Prime Minister is Pushpa Kamal Dahal. But the minister and the executive director of the corporation are new," said an official of the corporation, "it took some time to explain them. That's why there has been a delay. The ministry has instructed the corporation to make an immediate decision after seeing confusion in the investment model of the project that is supposed to be built by India. According to the ministry, after the final decision is made by the corporation and the report is submitted to the ministry, a phase G2G will be discussed.

After the corporation decides on its behalf, the ministry level G2G will discuss. Than building a project by taking a loan, the capacity can be increased by building a tank with the investment of the corporation,' said Thakur, the spokesperson of the ministry, 'It will cost 6 and a half billion to move the aviation fuel depot in Sinamangal, we have not been able to do that work which is considered essential, it is difficult to build a big project by taking a loan.'  ;

A technical study has been done to build a pipeline of about 69 km length from Amlekhganj to Lothar in Chitwan. The detailed engineering survey of the international Siliguri-Jhapa pipeline project has also been completed. The length of this pipeline will be 50 km. Out of this, 15 km is in the territory of Nepal. According to the corporation, the remaining 35 km will be on India's side.