India and Nepal have successfully concluded the ‘testing transfer’ of the Rs 325 crore Motihari-Amlekhguni oil pipeline and the strategically important project is set to start commercial operation next month, a media report said Friday.
Along with reducing the huge transportation cost for the landlocked country, the commercial operation of the oil project will also ensure reduction in fuel prices, officials said.
The Motihari-Amlekhgunj oil pipeline project was first proposed in 1996. However, the project finally edged closer to reality during Prime Minister Narendra Modi’s visit to Kathmandu in 2014.
The two governments had inked an agreement to execute the project in August 2015. However, project construction was delayed following the 2015 earthquake and supply obstruction along the southern border. Read More