Mumbai(PUJA MEHRA): The Centre and the Reserve Bank of India signed an agreement last month…
IOC will built a 41km 1.3 MMPTA petroleum pipeline from Raxaul in Bihar to Amlekhgunj in Nepal to supply the latter with petroleum products.
Shares of Indian Oil Corporation hit a high of nearly 5% on the back of a MoU signed between Indian Oil Corporation and Nepal Oil Corporation. This came soon after the Government of India and Nepal signed MoUs.
In accordance with the MoU, IOC will build a 1.3 MMPTA capacity petroleum product pipeline between Raxaul in Bihar and Amlekhgunj in Nepal. The project is estimated to cost Rs 275 crore, and needs to be completed within 30 days from the receipt of statutory clearances.
The company’s stock touched an intraday high of 4.89% at Rs 413.85 from previous day’s close of Rs 394.75.
This pipeline will ensure long term supply of petroleum products to Nepal from Indian Oil as well as stability of supplies from India to Nepal, which will benefit both the countries, IOC said in its filing to BSE.
Nepal meets all its fuel requirements — including, petrol, diesel, LPG, jet fuel — from Indian Oil Corporation. Under the current arrangement, IOC trucks these products from Raxual to Amlekhgunj.
The 41-kilometre pipeline — two kilometre in India and 39 km in Nepal — will initially supply petrol, diesel and kerosene.
India exports about $1.1 billion worth of petroleum products per annum to Nepal. Bulk of this volume will be transported through this pipeline.
At the time of writing, IOC’s stock had retreated from the day’s high, and was trading at Rs 397.00, up Rs 2.25 or 0.57%.