Khatiwada said this at the ‘Nepal-India Franchise Investment Expo and Conclave’ held in Kathmandu on May 15, 2019.

Commending Nepal as a suitable investment destination, the Minister told Indian industrialists that the Oli Government has created a conducive and secure environment for higher profitability through necessary policy reforms.

“Nepal is at present on the course toward economic prosperity by welcoming foreign technology and investment. We have made sweeping reforms in the legal framework. The one-stop service center has also been brought into operation. The law related to foreign investment and technology transfer too has been implemented,” Finance Minister said in a statement.

He said the government is also welcoming foreign investment and technology to drive the Nepali economy further.

Khatiwada added that the country’s ‘Visit Nepal Year 2020’ campaign, to drive 2 million tourists, provides a better opportunity for expanding investment in service industries.

Stating that Nepal tourism already has good private sector investment, he urged private investors to invest more into the sector considering the rise in tourist arrivals, every year.

The Minister also informed that the Nepal Government is currently preparing to introduce a new Intellectual Property Rights law, which is expected to be registered in Parliament by the end of the current session.

“The government is serious regarding the protection of the intellectual property and the patent rights as well,” read Khatiwada’s statement.

Meanwhile, the Federation of Nepal Chamber of Commerce and Industry (FNCCI) President Bhawani Rana said the investment expo will help the business community of both the nations to pursue investment opportunities in potential sectors.

She highlighted tourism, hospital, hotel, industry and allied sectors as the potential sectors for investment.

“The only slogan of the government is economic prosperity and the Prime Minister has been emphasizing on this. The government has also expressed its commitment to take the private sector along with it in every sector,” said the FNCCI President.

Indian Ambassador to Nepal Manjeev Singh Puri highlighted on the need to focus on franchise investment that attracts youth and stressed on the need for enhanced trade cooperation.

Mr. Manjeev Singh Puri – Ambassador of India to Nepal

A total of 47 special stalls have been organized at this event, being held from May 15-17, 2019.

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Exactly less than a week after the Summit, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) announced its plans to conduct Nepal-India Franchise Investment Summit in May 2019.

The Indian Embassy in Nepal and Franchise India are also partnering with FNCCI for this two-day Summit scheduled in Kathmandu during May 15-16, 2019.

Speaking on the Summit, Kapidhwaj Pratap Singh, Second Secretary (Commerce) Indian Mission in Nepal, said the investment need not be only money and can also come in the form of ‘technology’.

He informed that the Summit will provide market exposure to Nepali brands along with providing them opportunity to promote their products for the Indian market.

“Investments are not only, of course, they are in terms of money but investments also come in terms of technology and know-how. We are going to have a session exclusively for Nepali brands, the flagship Nepali brands on ‘How to take them to India’ ‘How to bridge the channels where they can start their businesses in India,” said Kapidhwaj Pratap Singh.

The event is aimed at building Indo-Nepal relations through entrepreneurship development, with core focus on networking between Indian and Nepali investors.

In a media briefing about the Summit, FNCCI President Bhawani Rana expressed hope that the event would help Nepal draw new investment opportunities.

Meanwhile, Indian Ambassador Manjeev Singh Puri said the Summit will pave a way for leading Indian iconic brands in Nepali market.

Besides investment, the Summit will also help in technology transfer and business know-how between the two nations.

While around 250 businesspersons and investors expected for the conclave, more than 1000 prospective franchisees and investors are expected to visit the expo.

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Finance Minister Yubaraj Khatiwada Delivers Welcome Address

The much-discussed Nepal Investment Summit unfolded on March 29, 2019 with a welcome note from Nepal Minister for Finance and Summit convener Yuba Raj Khatiwada at 9:00 AM.

Prime Minister KP Sharma Oli inaugurated the summit being held at Hotel Sialtee in Kathmandu. Speaking on the occasion, the Prime Minister said that the development agenda and foreign investment enjoy consensus in Nepal.

All political forces in the Nepal parliament stand united to welcome and support foreign investment in the country.

Prime Minister Oli’s Key Note Speech

According to the Investment Board Nepal (IBN), Nepal has put up 77 projects for foreign investment including 50 government projects and 22 on behalf of the private sector.

As per the Finance Ministry, the government is expecting an overall investment of up to USD 30 billion based on the interest show by various global investors.

Following are some of the key projects being showcased at the Nepal Investment 2019:

• East-West Electronic Railway
• Hetauda Smart City Project
• Kathmandu-Pokhara-Lumbini Railway
• Metro Rail in Kathmandu
• Sunkoshi Hydropower Project
• West Seti Hydropower

Other projects include:

• Cable car projects at various tourism destinations
• Kathmandu Outer Ring Road project
• Resorts and tourism projects

Government Expectations from the Investment Summit

Experts opine that more investment is expected from the summit as majority of the featured projects were chosen after preliminary feasibility studies and amending various laws paving way for more FDI.

The Finance Ministry is expecting at least 12 memorandums of understanding (MoUs) will be signed by multiple investors for different projects during the summit.

Over 600 foreign investors from 40 countries (including high-level dignitaries) are taking part in the summit.

China tops the list of Nepal Investment Summit 2019 visitors with a record of 265 investors and delegates.

Likewise, the summit will witness the participation 120 Indian, 21 Japanese and 19 Myanmar visitors. Representatives from Canada, Germany, USA, UK and South Korea are also participating in the summit.

Among the development partners and multinational companies, Myanmar Union Minister for Investment and Foreign Economic Relations U Thaung Tun, World Bank Vice President Hartwig Schafer, ADB Vice President Shixin Chen Multilateral Investment Guarantee Agency (MIGA) Chief Keiko Honda, and Economics and Private Sector Development at the International Finance Corporation (IFC) Vice President Hans Peter Lankes have come to attend the event in Kathmandu.

According to summit organizers, 10 sessions are scheduled for discussions on different issues of investments in Nepal. Muthoot Group Chairman M.G. George Muthoot and Meinhardt Group Executive Chairman Shahzad Nasim are among the keynote speakers at the event.

Unified Security for Nepal Investment Summit

In view of the upcoming Nepal Investment Summit 2019, the government instituted the unified security plan in Kathmandu Valley.

According to the Ministry of Home Affairs, the government adopted a special security system to maintain law and order during the two-day event. This includes the Nepal Police, Armed Police Force and National Investigation Department.

Moreover, security personnel dressed in civil dress and a mobile patrolling team have also been stationed to enhance the security, averting any unlawful activity.

Ministry Spokesperson Ram Krishna Subedi said that over 7,000 security personnel from all three security forces and traffic police were deployed in various key-summit related locations including the airport, Hotel Sialtee and guest-residing hotels.

Nepal Police Spokesperson Uttam Raj shared that as many as 4,200 Nepali Police personnel alone have been deployed for security of persons attending the investment summit

Background

The two-day conference is aimed at promoting Nepal as a promising investment destination.

“The main objective of the event is to project Nepal as a favorable investment destination by unveiling potential opportunities for investment in sectors such as Energy, Tourism, Industry, Transport Infrastructure, Information and Communication Technology and Agriculture,” the government said in an official release.

As per the release, the government is planning to utilize this forum to announce a range of policy reforms and incentives to attract investors.

The Summit will provide a platform for global investors to deepen their understanding of the investment environment and opportunities in Nepal, adds the release.

Salient Features of Nepal Investment Summit 2019

1) Topics To be Discussed:

• Investment Opportunities in Nepal
  This session includes a detailed presentation on improved business climate in Nepal with a focus on recent policy reforms undertaken by the government and showcasing of potential projects for studies and development.
• Investing in Nepal: Experience Sharing
  In this session, existing investors (foreign/NRN/Nepali) and other relevant development partners will share their experience of working in the Nepali market.

2) Focus Areas:

• Sharing policy reforms undertaken by the Government of Nepal
• Sharing potential projects both for studies as well as for the development
• Receiving first-hand knowledge and feedback on policy reforms from key business players in/entering Nepal
• Providing a networking platform for business leaders
• Encouraging public-private partnership

3) Allied Activities:

• Sector specific information center
• B2B, B2G meetings
• Project site visits on request
• Mountain flights and other tour packages on a direct payment basis

4) Target Sectors:

• Energy
• Information and Communication Technology
• Tourism
• Industry
• Transport Infrastructure
• Agriculture

5) Target Audience:

• Investors
• Development Partners
• Diplomatic Missions
• Government Representatives
• National and International Media
• Experts
• Other stakeholders

At a Glance: Invest in Nepal

Overall, the Summit is expecting around 500 participants, including 257 foreign delegates from 21 participating countries and singing of 13.7 billion worth Letter of Intents.

Also Read

• Nepal Investment Summit 2019: A Glance at Highlights, Event Outcomes

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A day earlier, the country has launched its first-ever telecom satellite project marking its grand entry into the space community.

Before that, the country has also signed a partnership for setting up of an advanced security printing facility at the Information and Technology Park in Banepa, Kavre.

Continuing on those lines, here comes another important update for Nepalis on the country’s hotel and hospitality industry.

In a recent update, India-based hospitality industry giant Oyo has announced its expansion plans in Nepal and India.

Closing in on a USD 1 billion funding received recently, Oyo Hotels & Homes announced that it has decided to make a Rs 1400 crore investment in its businesses across India and Nepal.

The investment will be directed towards infrastructure upgradation and technology development, informed Aditya Ghosh, Oyo CEO, India and South Asia.

Under the plan, Oyo will expand its Nepal operations from the present 3 cities to 15 Nepali cities in the next 10 months period.

By the summer season of the current year, the firm is targeting 10,000 new rooms across Nepali cities.

“We are committing over Rs 1,400 crore for technology investments, renovation, and managing investments for the calendar year, and will provide more, if needed, to help the team ensure continued economically efficient growth,” Founder and Oyo Group CEO Ritesh Agarwal said in an official statement.

Hope this will add to the development of Nepal’s fast-growing hotel and hospitality industry.

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Chairman of the Employers Council of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and FNCCI Vice-President Chandra Prasad Dhakal said this at the 8^th meeting of the South Asian Forum of Employers in New Delhi on February 12, 2019.

Addressing the event, Dhakal said that Nepal has established a suitable environment for employers and workers through successful implementation of laws related to labor and social security.

After a long political transition, Nepal now has a stable government and favorable investment climate, he added.

In this regard, Dhakal urged foreign investors to tap the investment potential of various Nepali sectors such as energy, tourism, agriculture and services.

He also welcomed investors from SAARC to the upcoming Nepal Investment Summit 2019 scheduled in March 2019, to identify possible areas of investment in Nepal.

He said the Government of Nepal is committed to building a conducive environment for foreign investors.

He explained that the upcoming Summit is a three-day event and will be a better opportunity to determine challenges and find appropriate solutions with regard to investment opportunities in Nepal.

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The Prime Minister stated this at a panel discussion session titled ‘Strategic Outlook on South Asia’ on January 22, 2019, held as part of the WEF Davos Conference 2019.

Addressing the panel, Oli said the Nepal Government considers introduction of social justice as the top priority along with society development and environmental safety.

“Nepal has now entered a new era where it sees optimism in increasing its role in the regional and international cooperation and development,” Oli told the panel.

On the occasion, Oli called on the international community to tap the potential resource base of the country through proper investment.

“We are trying to invite investment and new technology and introduce digital connectivity for enhanced regional cooperation,” Oli added.

‘Nepal is Now Politically Stable’

Explaining the panel about Nepal’s political scenario, the Prime Minister said the country could successfully overcome its political instability and is now moving ahead with clear policies and visionary leadership.

With this positive scenario in place, the country can achieve a faster growth rate within a short period.

“Nepal’s policies are favorable to private businesses. We are doing homework to lure the outgoing Nepali workers back to the country through incentives and job opportunities,” says Oli.

‘South Asia and Beyond’

Speaking about South Asia, Oli said the time has come for strong regional cooperation and trade.

Citing the BIMSTEC Summit 2018, he reiterated about Nepal’s connectivity and level of association with the South Asian nations.

“Nepal is not only connected with South Asia but also to Thailand, Myanmar among other ASEAN countries. We are going to open waterways, roads, airways with neighboring countries which will help in developing regional cooperation and trade,” said the Prime Minister.

Highlighting Nepal’s neighborhood with the two Asian giants India and China, Oli said Nepal can expand its connectivity with world nations with the help of its two close neighbors.

“Arrangements to this end has been put in place as Nepal has signed connectivity agreements with China and India. We are bringing railways from India and China to Kathmandu,” Oli added.

Sigve Brekke, president and chief executive of Telenor Group and ex-RBI Governor Raghuram Rajan were among key panelists of the session.

The Oli-led Nepali delegation also had Foreign Minister Gyawali on the occasion.

Nepal’s Next in Davos Conference 2019

Oli also addressed an informal gathering of world economic leaders on the theme ‘The End of Global Trade as We Know It?’ later in the day after the panel discussion.

Next, in the schedule, Oli will address another panel discussion on ‘Shaping the Future of Democracy’ on January 22, 2019.

The Prime Minister is also scheduled to hold separate discussions with business leaders and heads of the states as part of the #DavosConference2019.

Also Read:

• WEF Davos Conference 2019: Oli to Lead 19-Member Nepali Delegation
• Nepal for Key Global Summits: World Economic Forum, Raisina Dialogue Top Headlines

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The Development Cooperation Report 2018 released by the Finance Ministry on January 16, 2019 showed a 16 percent rise in foreign aid disbursement to Nepal (USD 1.62 billion) in the ended fiscal.

World Bank topped the list of aiding agencies with USD 533.51 million support, showing a 54 percent year-on-year rise in funding.

Asian Development Bank (ADB), United Kingdom, USAID and European Union stand as the major contributors.

Majority of the funding was focused on economic reforms, education sector, health, urban development and local infrastructure development.

It is noteworthy that the World Bank’s funding to the nation has increased during and after the 2015 earthquake. Even the other agencies also showed a growing trend with regard to offering financial support post the earthquake incident.

Top-5 Disbursements from Global Funding Agencies Aid to Nepal- A Glance at Comparison (in NPR)

Of the total disbursed amount, 50.5 percent of the fund came in the form of loan, 35.1 percent in grant and 14.4 percent as technical assistance.

It is notable that 78 percent of the foreign aid has come under in line with the budgeted requirements, reflecting in the government’s annual budget book.

Country-wise

The United Kingdom emerged as the top-3 donor after the world’s leading funding agencies, while Nepal’s closest neighbors did not appear in the list and were at 8^th and 9^th positions, respectively.

India’s contribution to Nepal during the year was USD 56.76 billion, down 4.2 percent year-on-year.

Sector-wise

Economic sector topped the list with regard to sector-wise receiving of funds, followed by education sector, urban development, health, local development, energy and housing.

“The increase in disbursement was due mainly to the implementation of ‘First Programmatic Fiscal and Public Finance Management Development Policy Credit’ funded by the World Bank,” said the report.

Bagging on Capacity Development

Finance Minister Yubaraj Khatiwada is hopeful that the donations would further go down as Nepal is moving on the path of development with good number of institutional reforms and enhancing its capacity to pay-back loans.

It’s clear. Drop in grant means our loan will grow,” he told a press conference on Wednesday. “As Nepal aims to graduate to the league of developing nations by 2022, we will have to focus on mobilizing the loans received under the low interest rate more prudently and in a transparent manner,” says the Minister.

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The report entitled ‘Local Shares: An In-depth Examination of the Opportunities and Risks for Local Communities Seeking to Invest in Nepal’s Hydropower Projects’ analyzed the country’s innovative benefit sharing policy that allows communities’ investment in local hydropower projects in the form of ‘local shares’.

Currently, the Government of Nepal mandates hydropower developers to give 10 percent of their shares to communities affected by the project.

Considering the government’s goal of generating 10,000 MW hydropower in the next 10 years, around USD 439 million can be raised from project-affected communities as ‘equity’, says IFC.

Nepal’s local shares model is unique. It recognizes the importance of communities in private sector hydropower investment, says Wendy Werner, IFC Country Manager for Bangladesh, Bhutan, and Nepal.

“For example, in the last three years, over USD 10 million was raised through local shares by 13 small-to-medium hydropower companies. The investment model offers great potential to create local ownership and increase public support for hydropower projects,” adds IFC, a World Bank Group member.

However, IFC reports lack of awareness about the sharing market mechanism and safety measures that can reduce investor risk among locals, majorly women and socially, economically & culturally disadvantaged communities of the country.

The report found that locals borrow at high interest rates or sell primary assets in order to invest in local shares, ending up in unrealistic expectations and risk of loss.

To address such gaps, IFC recommends community-level education and enhanced regulations that can maximize investment opportunities and also protect them from undue risk.

The study also recommends simplification of financial information making it understandable event to non-subject matter experts, creation of low-risk mechanisms for vulnerable households, digitizing the share allocation process and information online for more transparency and accountability in the process.

“IFC aims to ensure the private sector contributes to sustainable power development and that this investment opportunity is within reach of every citizen, balancing the potential returns with the project risks,” adds Werner.

“The comprehensive consolidation of this report is very timely and will hopefully enable informed discussions at the policy level to improve and strengthen the local shares mechanism as a viable model of equity participation involving local people,” says Kulman Ghising, Managing Director of Nepal Electricity Authority.

Also Read:

• Nepal 2017 Highlights: Hydropower Potential Grows Three-fold with 16 New Projects
• Himalayan Hydro Expo 2018: Investors Urged to Tap Nepal’s Hydropower Potential
• Nepal For Clean Energy Solutions, Bets Big on Hydropower

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With Israel
In a move enhancing the domestic energy sector, Nepal took another step that would foster its energy cooperation with Israel.

In a recent discussion, Nepal and Israel discussed ways to boost bilateral ties between the two nations, especially in the energy sector.

In a discussion with the Israeli Ambassador to Nepal Benny Omer, Nepal Minister for Energy, Water Resources and Irrigation Barshaman Pun urged the former to push for Israeli investment in Nepal’s energy sector, informed Pun’s Secretariat.

“There’s demand of 10,000MW of electricity for Nepal in 10 years. We have a favorable investment climate in Nepal for investors in the energy sector. Thus, I urge the Israeli investors to consider investment in this sector,” Pun reportedly said in a statement.

In response, the Israeli Ambassador expressed Israeli Government’s willingness to invest in Nepali energy and irrigation sectors.

Reiterating his support in this regard, Omar informed that Israel has already begun quest to find interested stakeholders who could invest in the Nepali energy sector.

With Bangladesh
Meanwhile, Nepal is also gearing up for a similar cooperation with Bangladesh.

According to a recent update, Nepali Ministry for Energy, Water Resources and Irrigation is planning to conclude an energy pact with Bangladesh during Bangla’s Power Minister Nasrul Hamid’s upcoming visit to Nepal.

The Bangladeshi minister is scheduled to embark on a three-day state visit to Nepal from August 9, 2018.

As the sources say, both the sides are expected to sign a MoU in this regard to form a high-level bilateral mechanism for electricity trade between the two countries and for inviting Bangladeshi investment in Nepali hydropower projects. 

It has been some time since a high-level discussion was held between the two countries regarding energy trade and investment. If the joint mechanism is formed, it will be a wonderful platform to turn the discussion into reality, reads a statement.

Both the sides have also agreed to establish secretary and joint secretary-level mechanisms in this regard.

With Myanmar
Very recently on July 31, 2018, Nepal signed another deal with Myanmar that would enhance Nepal-Myanmar bilateral ties.

At the Foreign Ministry level, both the sides signed a MoU for the establishment of the Bilateral Consultation Mechanism and exemption of visa requirements for the holders of diplomatic and official (special) passports.

Nepal Joint Secretary at the Foreign Ministry Tapas Adhikari and Myanmar Ambassador to Nepal Thiri Pyanchi U Tun Nay signed an agreement in this regard on behalf of both the nations.

During the meeting, Nepali Foreign Secretary Shanker Das Bairagi and his counterpart U Myint Thu
also reviewed other key matters pertaining to bilateral relations and ways to take them further, reads an official statement.

Also Read: 

• Oli India Visit 2018: India, Nepal Strengthen Ties, Target Next-level Development
• Nepal-Uzbekistan Diplomatic Ties Established
• Nepal, Benin Establish Diplomatic Ties
• Nepal 2017 Highlights: Politics and Bilateral Relations

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The move closely watched by Indo-Nepal communities, resulted in positive outcomes as evident in Oli’s statements after the successful completion of his three-day visit during April 6-8, 2018.

As part of the visit along with his wife and 53-member Nepali delegation, Oli held discussions and special meetings with the Indian dignitaries including President Ram Nath Kovind, Prime Minister Narendra Modi and other key political leaders and personalities.

Significant and Fruitful

“My official visit to India was significant and fruitful. The visit has helped in clearing misunderstanding

and mistrust, and strengthening mutual trust and understanding. The bilateral relations will move forward in a new direction on the basis of equality and mutual interest,” Oli said in a statement after arriving at the Tribhuvan International Airport in Kathmandu post his India visit, indicating a new era for Indo-Nepal bilateral ties under his government.

We have agreed to expedite past agreements and understandings reached between the two countries, he added.

As part of the visit, both the sides also discussed cooperation across various sectors. Let’s have a glance at some of the key highlights of sector-wise cooperation discussed during Oli’s visit:

In the bilateral meetings, India and Nepal agreed upon few key agreements that have been under discussion for quite some time.

Stating that both the Prime Ministers were satisfied with the bilateral talks, Indian Foreign Secretary Vijay Gokhale informed that the two sides discussed strengthening of cooperation through agriculture, trade, defense, security, along with enhanced connectivity through railway and water ways.

Both the sides have reportedly come to a consensus on taking ahead the construction of Raxaul- Kathmandu railway line and the operation of Nepalese steamers for goods and public movement from Nepal to other countries.

Trade, Security & Inland Waterways

Towards trade cooperation, the two sides decided to develop inland waterways within the trade and transit framework for a seamless movement of cargo between the two countries.

During the discussions, Oli also raised concerns over widening Nepal’s trade deficit with India and urged Indian Government to encourage more Nepali exports.

With regard to security, he said, “We have strong relations when it comes to the aspect of security. We will work together to stop misuse of our open border.”

Green Revolution and Connectivity                                                                                                                  

As part of visit to the Uttarakhand’s GB Pant University of Agriculture and Technology, where he was awarded the honorary doctorate (Doctor of Science), Oli urged India’s support for revolutionizing agriculture in Nepal.

“Both India and Nepal are agriculture-based economies and should work together in boosting agricultural output,” Oli said in a statement.

On the occasion, Oli also welcomed the University’s collaboration in revolutionizing the Nepali agriculture sector saying, “Looking towards Indian varsities like GB Pant, one of the harbingers of the Green Revolution, who can aid us in achieving our objectives in this regard… I think if the university and Nepal collaborate in the sector, agriculture in our country will get revolutionized through a technological boost.”

He further said India’s and the University’s support are key for strengthening the two agricultural universities in Nepal that are in the initial stages of development with the need for research support.

In response, Uttarakhand Governor K.K. Paul expressed the University’s willingness to collaborate with the Government of Nepal in the fields of horticulture and herbal farming.

Lauding Oli’s visit, Chief Minister of Uttarakhand Trivendra Singh Rawat urged for improved connectivity between Nepal and Uttarakhand, especially in the border areas of Tanakpur and Dharchula.

He also pitched for direct flights between Kathmandu and Dehradun.

Call for Investment

As part of the visit, Oli held a round of discussion with the Indo-Nepal business community, wherein, he urged the Indian business community to invest in Nepal.

Citing Nepal’s investor-friendly environment, Oli pitched for investments across infrastructure, tourism, IT, agriculture and power sectors.

Stating that Nepal has fair and investor-friendly policies along with a supportive policy regime, Oli called on the businessmen for massive foreign investment.

“Indian investors have invested across the globe, so why not go to the next-door Nepal. Geographical proximity, easy access and cultural similarities are all there to make you feel good about Nepal,” noted Oli.

Potential Market & Incentives

Speaking on market opportunities Nepal has for the foreign investors or collaborators, Oli said, “Investors always look for market. Look at Nepal’s position. For us, market is not a problem, but production is a problem. It is lying between two vibrant economic powers with huge population of the world — India and China. That assures you of a promising market of 2.5 billion people. Seize the opportunity.”

Lauding European markets for their duty-free access to Nepal, he said, “We are ready to listen to you, your advises and suggestions. We want to know your views. We are committed to further improving our business climate.”

Wooing foreign investors, he noted that Nepal offers attractive incentives compared to other countries by way of simplified tax regimes and reduced tariffs.

He also informed about Nepal’s plans to establish Special Economic Zones (SEZ) in the cities sharing borders India along with offering necessary incentives to the industries, forming liberal labor laws, among others.

First International Cross-country Pipeline

As part of the visit, Oli and Modi inaugurated the long-awaited initiative of Rs 3.24 billion worth India-Nepal petroleum pipeline from Motihari to Amlekhgunj. This is the first international cross-country pipeline project in India.

Under the project, Indian Oil Corporation will supply Nepal’s major petroleum products from its Barauni Refinery and Raxaul depot in Bihar to Amlekhganj depot of Nepal Oil Corporation.

The 69-km-long pipeline project involves setting up of a 10.75-inch diameter cross-country pipeline that stretches from Motihari in Bihar to Amlekhganj in Nepal, with 32.7 km of pipeline in the Indian territory and 36.2 km in the Nepali territory.

The design-throughput capacity of this pipeline, which has pumping facilities at Motihari, stands at 2.0 million tons per annum.

This major project signed in 2015 is expected to be completed by March 2019.

The End Note

Overall, Oli’s recent visit to India has opened avenues for new form of bilateral cooperation between Nepal and India contributing to a strong South Asia. Now, it’s time for wait and watch!

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