The MoU to construct the 35-km pipeline from Raxaul in Bihar on the Indian side to Amlekhganj in Nepal was signed at a function at Indian Oil’s corporate headquarters here. The inking of the pact coincided with a visit to India by Nepalese Prime Minister Sher Bahadur Deuba. The proposed pipeline will be designed for a capacity of 1.1 million tons/yr to meet current and future needs. The estimated cost of laying the pipeline is $7.1 million, and completion schedule is approximately 24 months. On completion, the pipeline will transport petrol, diesel, and kerosene, the IOC said in a statement. The new pipeline is expected to ensure uninterrupted supply of petroleum products to Nepal through an environment-friendly mode of transportation, effecting savings in freight besides reduction in stock loss. At present, Nepal’s entire requirement of 0.7 million tons/yr of petroleum products is being met by Indian Oil through supplies to Nepal Oil from its depots and terminals in the border areas.