Lok Sabha Question No. 6 (UNSTARRED), answered on 2015-11-30
Subject: Construction of Oil Pipeline
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SUMEDHANAND SARASWATI, SANTOSH AHLAWAT, BALASUBRAMANIAM SENGUTTUVAN, RAJAN BABURAO  VICHARE, DODDAALAHALLI KEMPEGOWDA SURESH

## LOK SABHA UNSTARRED QUESTION NO. 6 TO BE ANSWERED ON 30 th  NOVEMBER, 2015

## CONSTRUCTION OF OIL PIPELINE

6. SHRI SUMEDHANAND SARSWATI:

SHRIMATI SANTOSH AHLAWAT:

SHRI B. SENGUTTUVAN:

SHRI RAJAN VICHARE:

SHRI D.K. SURESH:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Government  proposes  to  set  up  Natural  Gas/LPG  pipeline  to  Nepal  from Raxaul to Amlekhganj and if so, the details thereof along with the objective and cost of the project;
- (b) whether any agreement has been signed to construct oil pipeline to Nepal and Oil and Gas trade deal with Russia and if so, the details thereof and likely impact on the Indian oil and gas sector from the said deal;
- (c) whether State owned Indian Oil Corporation supplying petroleum related products/cooking gas to Nepal through road route and if so, the details thereof;
- (d) whether the said supply has been disrupted due to strike called by the Madhesi leading to acute shortage of fuel in Nepal and huge pile of Indian trucks at the Indo-Nepal border;
- (e) if so, the details thereof and the concrete steps taken in this regard; and
- (f)  whether  the  Government  of  Nepal  and  State  owned  Nepal  Oil  Corporation  have  made Memorandum  of  Understanding  with  China  and  Bangladesh  oil  companies  for  supply  of petroleum products and if so, the details thereof and the steps taken by the Government for uninterrupted supply of petroleum products to Nepal for better bilateral relations?

## ANSWER

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) (श्री धमेन्द्र प्रधान)

MINISTER  OF  STATE(INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF  PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) and (b): Government of Nepal and Government of India have  entered into an MoU on 24.8.2015  for  the  construction  of  Raxaul  (India)-Amlekhgunj  (Nepal)  Petroleum  Products Pipeline to provide efficient supply of petroleum products. The MOU provides for a 41 km pipeline  (2  km  in  India  and  39  km  in  Nepal),  to  supply  Petrol,  Diesel  and  Kerosene.  The pipeline is to be constructed by Indian Oil Corporation at a cost of approximately Rs. 200 crore. It also provides for additional facilities in Amlekhgunj depot to be developed by Nepal Oil Corporation at a cost of approximately Rs. 75 crore.

Oil  and  Gas  companies  sign  term  contracts  for  supply  of  oil  and  gas  with  various producing countries including Russia depending on the techno -commercial viability.

(c) Indian Oil Corporation Limited supplies major petroleum products to Nepal  Oil Corporation  from  10  supply  locations  through  Tank  trucks  arranged  by  the  Nepal  Oil Corporation. During 2014-2015 1327480 MT and during April to October 2015 644070 MT of petroleum products have been provided to Nepal.

(d) and (e): Supplies  were disrupted due to obstructions at several of the India-Nepal border crossing by disaffected sections of the Nepalese population on their side.   There was no blockade  by  India.    Despite  obstructions,  a  large  number  of  cargo  trucks  have  passed through those crossing points that were open and available.  Within the existing logistical constraints, Government of India continued to meet Nepal's POL requirements to the extent possible, including by facilitating re-routing of stranded POL tankers through other available crossing  points.  Airlift  of  aviation  fuel,  including  flight  clearance  for  third  country  supplies, was also permitted.

(f)  There  is  no  official  information  available  on  the  subject  since  it  pertains  to  discussions between  two  sovereign  Governments  of  Nepal  and  China,  as  well  as  between  the Governments of Nepal and Bangladesh.

Government of India is ready to meet Nepal's need for petroleum products subject to logistical constraints.

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