Prime Minister Narendra Modi Prime Minister Narendra Modi jointly inaugurated the South Asias first cross-border pipeline through video conference from New Delhi

The petroleum pipeline extends from Motihari in Bihar to Amlekhganj in Nepal and be used to will transfer diesel, LPG and aviation turbine fuel

Prime Minister Narendra Modi and his Nepalese counterpart KP Sharma Oli on Tuesday inaugurated first of its kind cross border commercial oil pipeline between India and Nepal in South Asia.

Speaking at the inauguration through video conference, PM Modi said, "This is one of the best examples of trade and transit between India and Nepal." PM Oli added, "Implementation of various India aided projects in Nepal have gathered momentum in recent years following the understanding between me and PM Modi."

Nepal's PM said the project will enhance "interconnected and interdependence" between India and Nepal.

The idea of the pipeline was first proposed in 1996 and finalised in 2014 during PM Modi's Nepal visit. It was approved by Indian Oil at a total cost of Rs 324 crore in September 2015 but the work was delayed following the earthquake of 2015.

The pipeline will replace road transportation and ensure uninterrupted supplies. The pipeline is 69 km long with a capacity of 2 million tonnes per annum. Around 32.7km of the pipeline is in Indian territory and 36.2 km in Nepal's territory.

India is engaged in a number of projects in Nepal. Last year Integrated Check Post in Birgunj (Nepal) built with New Delhi's assistance was inaugurated during PM Modi's visit. Both leaders also inaugurated three-storied library for Nepal Academy and Nepal-Bharat Maitri Pashupati Dharmashala in Kathmandu. Zee Media Newsroom


The pipeline, which runs from Motihari in Bihar to Amlekhgunj in Nepal, will replace tankers that carry petroleum products from India as part of an arrangement put in place in 1973. The project cost Rs 324 crore. This will help in reducing price of fuel by Rs 2 per litre in Nepal.