Modi, Oli open first oil pipeline to counter China in South Asia

News Bharati    12-Sep-2019
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Kathmandu, Sept 12: India and its Himalayan neighbour Nepal jointly inaugurated the first cross-border oil pipeline in South Asia on Wednesday. The pipeline was opened via video conferencing by India’s Prime Minister Narendra Modi and his Nepali counterpart Khadga Prasad Sharma Oli.

This 69-km long pipeline is designed to counter China’s hegemocy in the Himalayan region, analysts believe. It pipeline links Motihari in Bihar to Amlekhgunj some 100 km south of the Nepali capital city of Kathmandu and the storage facilities of Indian Oil Corporation and those of Nepal Oil Corporation.

India financed this Re 3.2 billion project that will supply oil at a low cost constantly. The pipeline will save Nepal about .7 million in transport costs according to Birendra Goit, a spokesman of Nepal Oil Corporation.

Nepal’s oil consumption per year is about 2.66 million tonnes and 480,000 tines of cooking gas currently carried by Lorries. The pipeline will deliver two million tonnes of oil.

On the inaugural function India’s Prime Minister Narendra Modi assured cooperation and assistance for the future projects including the corridor to deliver natural gas across the border.


India and Nepal enjoy better bilateral relations during the Modi regime. Both the countries share 1751 km of border and the relations were improved since a crisis broke out at the end of 2015 in the Terai region.

After being long-term allies, the two countries saw bilateral trade drop considerably after India imposed an unofficial export embargo against Nepal after it adopted its first democratic and secular constitution.


The blockade stopped the delivery of fuel, food and other essential goods bringing the country to the brink of civil war, at a time when it was still reeling from the devastating earthquake of April 2015 that killed more than 9,000 people.

China saved the country from bankruptcy, replacing India as a Nepal’s main partner. In recent years, Beijing invested millions of dollars in the Himalayan nation to build hospitals, roads and hydroelectric plants.

India’s latest move “is a very, very important development,” said Shiv Mukherji, a former Indian ambassador to Nepal. “The pipeline connects India seamlessly to Nepal underlining the fact that geography favours India-Nepal relations naturally" over those with China.

India Nepal Oil Pipeline Motihari to Amlekhgunj Narendra Modi Khadga Prasad Sharma Oli Himalayan Region China