India and Nepal in talks about oil pipeline

India and Nepal have decided to speed up work on an oil pipeline between Raxaul in Bihar, India, and Amlekhgunj in Nepal. The Rs 100-crore (US$20.3 million) oil pipeline is expected to reduce the cost of transporting fuel by as much as 40%. “We have got to look into it and find money for it. Things don’t get sorted out in one meeting. Give us some time,” India’s Commerce Secretary Rahul Khullar said. There are no clear indications as to how the resources for the oil pipeline are going to be raised. Although feasibility and technical studies were finished in 2006, there has been no progress. According to Nepal Oil Corporation, one of the reasons for the delay is the indecision on whether the company will build the pipeline by itself or go into a joint venture with Indian Oil Company. Both sides have agreed to meet again in January 2012. (December 7, 2011)