The two Ministers will switch on the pipeline through remote control from their respective offices in Kathmandu and New Delhi.

The said project is of utmost importance to Nepal as it will significantly bring down fuel transportation costs for the country, which imports fuel from India.

The pipeline will bring fuel from the Baurani refinery in Bihar’s Begusarai district to Nepal’s Amalekhunj. The Amalekhunj fuel depot has a storage capacity of 16,000 kls of petroleum products.

Earlier this year, Indian Ambassador to Nepal Manjeev Singh Puri had termed the petroleum pipeline project as ‘a game changer for Nepal’.

“The Motihari-Amalekhgunj pipeline will help in tackling the oil storage problem in Nepal and doing away with transportation of petroleum products through tankers. It will ensure smooth, cost-effective and environment-friendly supply of petroleum products to Nepal,” said Puri.

Motihari-Amalekhunj Petroleum Pipeline Project – Cost

The initial cost for the project was estimated at NPR 275 crore, of which India said it would bear NPR 200 crore.

However, the Nepal Oil Corporation (NoC) said that the cost for the project scaled up to around NPR 325 crore.

“Commercial operation of the cross-border fuel project will bring down fuel price by at least one rupee per litre,” said Sushil Bhattarai, NOC Deputy Executive Director.

The NoC and the Indian Oil Corporation (IoC) successfully completed the Motihari-Amalekhunj pipeline project test in August 2019. During the test, the IoC supplied 3,100 kls of diesel through the pipeline to test the newly-constructed tanks at Amalekhunj.

According to the NoC Deputy Executive Director, the pipeline is able to supply 394 kls of petroleum per hour.

“In the initial phase we plan to receive only diesel, which is about the 70 per cent of total petroleum product imports, through the pipeline,” said Bhattarai.

Once the pipeline is inaugurated, Nepal will import 3,000 kls of diesel per day.

“After the commercial operation of the project starts, it will bring down fuel price by at least one rupee per litre in the domestic market,” added Bhattarai.

The Motihari-Amalekhunj pipeline project was first proposed in 1996. However, the project was put on hold until Indian PM Narendra Modi’s visit to Nepal in 2014. The two nations PMs had then signed an agreement to commence project works in 2015. However, the project was further delayed following the 2015 Gorkha earthquake and India’s economic blockade.

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Both countries representatives PM KP Sharma Oli and Narendra Modi will inaugurate the oil pipeline project.

Nepal Ministry of Foreign Affairs (MoFA) and Nepal Oil Corporation (NOC) confirmed the groundwork for the inauguration in August first week.

There is also a likelihood for Presidents of both countries Bidya Devi Bhandari and Ram Nath Kovind to inaugurate the project as the former had invited Kovind for an official visit to Nepal.

“While the first option is more likely, the two governments are also exploring the possibility of the second option,” said an MoFA source.

According to NOC, the total cost for the project went up to NPR 3.25 billion despite an earlier estimation of 2.75 billion.

The commencement of the project will not only ease NOC’s transportation cost, but will also reduce fuel prices in the domestic market.

“Commercial operation of the cross-border fuel project will bring down fuel price by at least one rupee per litre,” said Sushil Bhattarai, NOC Deputy Executive Director.

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In the meeting, the two representatives thoroughly reviewed the status of Nepal’s India-funded ongoing projects including cross-border railways, inland water ways, post-earthquake reconstruction, Arun III project, Pancheshwor multipurpose project and Upper Karnali project.

The two foreign secretaries also spoke about issues including terrorism and the pending SAARC process.

This meeting is being held with the objective of ensuring smooth execution of old and new agreements between Nepal and India.

It will also review the work progress made during the meetings of the Nepal-India Oversight Mechanism.

In the past, Nepal-India representatives have held three video conferences to resolve ongoing issues in the execution of India-supported Nepal projects.

Government officials from both sides opine that this meeting is a good opportunity for both countries to review and assess the past commitments made during both Nepal, India Prime Ministerial visits in 2018.

During his visit, Gokhale will also meet Nepal PM KP Sharma Oli and Foreign Minister Pradeep Kumar Gyawali.

The visit comes at a time when the two countries are failing to hold the 5^th Meeting of the Joint Commission at Foreign Minister-level, earlier scheduled to be held in mid-February 2019.

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In this regard, Gyawali reportedly urged the Indian side to accept the report given by the EPG team pertaining to bilateral ties.

“The EPG was a wise initiative. It was based on the realization that all bilateral aspects should be reviewed according to new paradigm of the 21st century. I am confident that it will be submitted and implemented,” said Gyawali, speaking on India’s reluctance to Nepal-India EPG report on Indo-Nepal ties.

Gyawali was in India to attend the Raisina Dialogue 2019 during January 08-10, 2019.

The BackGround

Earlier on June 30, 2018, the Indo-Nepal EPG met to address key gaps concerning bilateral ties of both nations and come up with a joint-report on the same.

The meeting ended with important recommendations including the 1950 Peace and Friendship Treaty, new regulations for Indo-Nepal border crossing and measures to control trafficking and terrorism, among others.

While the report has been prepared and shared with both government heads, the Indian side is not pleased with the recommendations of the report.

Nepal said that India cannot raise questions about the report since it was prepared by a joint team that was nominated and appointed by both countries ruling governments, while expressing concern over the situation.

Nepal Minister for Communication and Information Technology Gokul Baskota said that Nepal Government cannot even imagine that India will not accept the EPG report, as it was jointly prepared by both nations.

Moreover, he said that Nepal is hopeful of the report’s early implementation, which seeks to redefine Nepal-India relations in the wake of Nepal’s changed political scenario, answering media queries.

“EPG was formed following an understanding reached between the prime ministers of both countries and the report was prepared by members nominated and accepted by both countries, so Nepal does not think that India will not receive the EPG report,” adds Baskota.

Indian Prime Minister Narendra Modi has reportedly been hesitating to meet the Indian EPG side who have to submit the EPG report.

They have been seeking an appointment with Modi since the last five months but have not been successful owing to his busy schedule.

According to sources, Modi is not happy with some of the joint report’s recommendations.

Minister Baskota opines that if India continued to avoid the report, it may result in indifference between the two nations bilateral relations.

The contents of the report have not been revealed, however, a section of Indian policymakers and strategy builders have already expressed dissatisfaction over its contents.

A few recent media reports indicate that Modi has been advised against the reception of the EPG report as it calls for revision of some ‘unequal’ treaties, going against India’s interests.

Indian ruling party leader Vijay Jolly said publicly that the report was unacceptable for India, during his visit to Kathmandu.

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Chief Guest and SAARC Vice-President Nanda Bahadur Pun graced the occasion including a large numbers of dignitaries and Nepal Government officials, resident ambassadors, regional & international organizations representatives and civil society & business community representatives.

Secretary General Sial appreciated SAARC member countries governments and citizens on the occasion of the 34th SAARC Charter Day.

“Over the last 33 years, SAARC has made steady progress towards socio-economic development in the region, which is fundamental to the promotion of the welfare of the peoples,” stated Sial while addressing the congregation.

“Endowed with vast human and natural resources, South Asia has immense potential. With sustained endeavors, we will surely be able to realize the region’s fullest potential. Essentially, therefore, SAARC is the beacon of hope and aspiration, and a matter of pride for all South Asians. SAARC is our common identity, our inspiration and our future,” he added.

History of SAARC Charter Day
The SAARC member heads adopted the SAARC Charter on December 08, 1985 at the First SAARC Summit in Dhaka.

As per the charter, member countries are bound by ties of shared history & culture and work towards mutual prosperity & development.

Unfortunately, the SAARC summit has been put on hold due to indifferences between member countries, Indian and Pakistan. Nepal is current chair of the SAARC summit and is eagerly waiting to transfer chairmanship to Pakistan since 2016.

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After a dismaying round of talks at New Delhi on October 11, 2018, the Civil Aviation Association of Nepal (CAAN) officials were forced to return home without any breakthrough, remarked CAAN authorities.

Access from L626 IN Nepalgunj air route was denied on the grounds of ‘defense issues’ while entry for high-level flights from L626 in Mahendranagar was denied due to heavy traffic in the Indian airspace, revealed sources.

“It seems that the issue will not be sorted out at the technical level and hence it will require a political level intervention,” they added.

Reasons Behind India’s Denial
Some officials think that the denial from the Indian side comes as a result of Nepal’s inability to participate in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) joint-military exercise in Pune, last month.

Others think that India is using the situation as a ‘bargain chip’ to make Nepal use its advanced aviation technology ‘GAGAN’.

Although the Nepali visiting team was given full authority to negotiate on every possibility of routes and sign an agreement on CAAN’s behalf, India’s response left the Nepali side helpless and indicated that decisions lay in the hands of ‘higher authorities’.

With regards to Nepal’s proposal, India says it will make further examinations by September.

What Price Will Nepal Have to Pay?
The L626 from Mahendranagar and Nepalgunj will prove crucial to upcoming international airports in Bhairahawa and Pokhara, which are very much financially and technically dependent on India’s access provision.

According to Ministry documents, any diversion along these routes will cause international flights headed for Nepal’s Gautham Buddha Airport, an additional 300 kms to land. The upcoming international airport at Pokhara will also have to face the same issue, alongside operational costs.

Nepal had been pitching for cross-border airspace access for nine years! The issue was a part of Indian Prime Minister Modi’s visit to Nepal in May 2018.

Let’s see whether India will change its mind on the current issue and ease Nepal’s airspace concerns.

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