In a major step for bilateral cooperation and energy security, Indian Oil Corporation Limited (IndianOil) and Nepal Oil Corporation (NOC) signed a Business-to-Business (B2B) Framework Agreement today. The signing, attended by Mr. Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, and Mr. V. Satish Kumar, Chairman of IndianOil, will facilitate key petroleum infrastructure projects in Nepal. The agreement was signed by Mr. Senthil Kumar N from IndianOil and Dr. Chandika Prasad Bhatta from NOC.
The Memorandum of Understanding (MoU) signed on May 31, 2023, between India’s Ministry of Petroleum and Natural Gas and Nepal’s Ministry of Industry, Commerce and Supplies highlights the strong India-Nepal partnership, exchanged in the presence of both Prime Ministers.
The G2G MoU includes extending the Motihari-Amlekhgunj Petroleum Pipeline (MAPL)—South Asia’s first transnational pipeline—to Chitwan, Nepal. It also covers constructing oil storage terminals in Chitwan and a new pipeline from IndianOil’s Siliguri facility to Jhapa. These projects will enhance petroleum logistics, address Nepal’s future energy needs, and improve energy security during natural disasters.
The B2B Framework Agreement marks a new chapter in the India-Nepal energy partnership, enabling IndianOil and NOC to start construction on these vital projects. This collaboration will optimize petroleum transportation and significantly reduce costs for Nepal Oil Corporation by minimizing reliance on tank trucks.