In a significant step toward enhancing bilateral cooperation and energy security, Indian Qil Corporation Limited (IndianQil) and Nepal Oil Corporation (NOC) signed a Business to Business (B2B) Framework Agreement today in presence of Mr. Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas (MoP&NG), Government of India (GoI) and Mr. V. Satish Kumar, Chairman & Director (Marketing), IndianOil, paving the way for the development of critical petroleum infrastructure projects in Nepal. The MoU was signed by Mr. Senthil Kumar N, Director (Pipelines) holding additional charge of Director (Planning & Business Development), IndianOil and Dr. Chandika Prasad Bhatta, Managing Director, NOC.
This agreement follows the Government-to-Government (G2G) Memorandum of Understanding (MoU) signed earlier between India's MoP&NG and Nepal's Ministry of Industry, Commerce and Supplies (MoICS) on May 31, 2023. The G2G MoU was exchanged in the presence of the Hon'ble Prime Ministers of both nations, symbolizing the strength of the India-Nepal partnership.
During the event, Mr. Jain said, "The existing pipeline from Motihari to Amlekhgunj being extended to Chitwan takes care of one part of Nepal, and the upcoming terminal at Jhapa is equally important given the challenges of Nepal being a hill state." He remarked, "our GDP growth, for any country, will depend on the availability of affordable and reliable fuel. These pipelines will actually be ensuring that."
Mr. V Satish Kumar, Chairman and Director (Marketing), IndianQil, stated, "We are proud to strengthen the India-Nepal energy partnership through this B2B framework between IndianOil and Nepal Oil Corporation. This collaboration builds upon the success of the Motihari-Amlekhgunj pipeline and paves the way for seamless energy connectivity, enhancing energy security for both nations. IndianOil remains committed to timely execution of these projects and fostering a stronger bilateral relationship."
The G2G MoU encompasses the extension of the Motihari - Amlekhgunj Petroleum Pipeline (MAPL) - South Asia's first transnational petroleum product pipeline, commissioned in 2019 - to Chitwan, Nepal. Additionally, the MoU covers the construction of oil storage terminals at Chitwan and a new transnational pipeline from IndianQil's facility in Siliguri to Jhapa alongside an oil storage terminal at Jhapa. These projects are expected to transform petroleum logistics between the two countries. These pipelines have been designed to meet the future energy needs of Nepal, with ample storage capacity at both the Chitwan and Jhapa terminals.
The B2B Framework Agreement signed today enables IndianQOil and NOC to take up construction on these vital projects. This collaboration is crucial for optimizing the transportation of petroleum products, which will significantly reduce costs for Nepal Oil Corporation by minimizing reliance on tank trucks. Furthermore, the infrastructure is designed for mitigation of handling losses & environmental risks, alleviation of border congestion and strengthening of Nepal's energy security - especially during natural disasters such as floods and landslides.
The signing of this B2B Framework Agreement marks the beginning of a new chapter in India - Nepal energy partnership, further solidifying the long-standing people to people relationship between India and Nepal.
Shares of Indian Oil Corporation Limited was last trading in BSE at Rs. 178.90 as compared to the previous close of Rs. 180.05. The total number of shares traded during the day was 822948 in over 5533 trades.
The stock hit an intraday high of Rs. 181.30 and intraday low of 177.25. The net turnover during the day was Rs. 147372944.00. |
