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IndianOil signs pact with Nepal Oil for laying product pipeline

New Delhi, September 9, 2004

Indian Oil Corporation Ltd today signed a Memorandum of Understanding (MoU) with Nepal Oil Corporation Ltd. (Nepal Oil) for laying a product pipeline between Raxaul (India) and Amlekhganj (Nepal).

Currently, Nepal's entire requirement of 0.7 MMTPA of petroleum products is being met by IndianOil through supplies to Nepal Oil from its depots and terminals in the border areas. IndianOil supplies about 60% of Nepal's requirement of major products from its Raxaul depot alone via Amlekhganj depot of Nepal Oil, which is about 35 kms away from Raxaul. The proposed 35 km long product pipeline will be designed for a capacity of 1.1 MMTPA to meet current and future needs.

The new pipeline is expected to ensure uninterrupted supply of petroleum products to Nepal through an environment-friendly mode of transportation, effecting savings in freight besides reduction in stock loss. The estimated cost of laying the pipeline is Rs. 33 crores and completion schedule is approximately 24 months. On completion, the pipeline will transport petrol, diesel and kerosene.

IndianOil and Nepal Oil have a mutually beneficial relationship for over three decades now. The MoU signed today will now provide opportunities for future collaboration between IndianOil and Nepal Oil in areas of retail and LPG including setting up of bottling plants in Nepal.

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