The construction of cross-country oil pipeline between India and Bangladesh will begin from this month.
As per a report published on Friday by The Hindu BusinessLine, Prime Minister Narendra Modi may flag off the construction of the pipeline to carry diesel from Siliguri in West Bengal to Parbatipur in Dinajpur district of North Bangladesh.
It may be mentioned that India and Bangladesh in April this year had signed six Memorandums of Understanding (MoUs), including one for the construction of an 129.5 km oil pipeline between Siliguri and Parbatipur.
The MoU on oil pipeline was signed with an aim to pump diesel from India to Bangladesh with a capacity of 1 million tonnes per year.
“The MoU focuses on deepening bilateral cooperation in the hydrocarbon sector and the mutual benefits for both sides that would accrue from the proposed construction of approximate 129.5 km long oil pipeline from the Siliguri Marketing Terminal of the Numaligarah Refinery Ltd (NRL) in India to the Parbaripur depot of the Bangladesh Petroleum Corporation (BPC),” read the MoU.
The The Hindu BusinessLine report stated that the 6-km Indian leg of the pipeline will be financed by Assam-based Numaligarh Refinery Limited (NRL).
On the other hand, the remaining 130 km of the oil pipeline will be in Bangladesh and it will be financed through India’s ongoing development cooperation programme.
The total cost of the oil pipeline is pegged at ?360 crore.
The oil pipeline project, is scheduled to be completed in 27 months, will replace the existing practice of sending diesel by rail, covering a distance of 510 km, the report stated.
It may be mentioned that India started sending Euro-III diesel produced by NRL to Bangladesh following a deal in March 2016.
State-run NRL on October, 2017 had signed a 15-year agreement with Bangladesh Petroleum Corp (BPC) for export of diesel to the neighbouring nation.
“In a historic development, Numaligarh Refinery Ltd inked a 15-year long term sale and purchase agreement with BPC for export of gas oil (diesel) to Bangladesh,” the company said in the statement.
The NRL currently sends approximately four rake loads (10,000 to 12,000 kilo litre) of diesel every month for distribution in Bangladesh.