India Nepal To Build 2nd Petroleum Pipeline

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UNDERSTANDING CURRENT DYNAMICS

P Oli seems to have prevailed in his political struggle within his own political party
A statement released by Prachanda last week has indicated that Oli will remain as prime minister for the full five-year term. As a solution to the intra-party rift, Oli’s role in party affairs will be curtailed

The current political solution will provide some stability between India and Nepal relations for the time being

The atmosphere of mistrust between India and Nepal over border issues has not impacted energy sector cooperation between the two countries

The existing Motihari-Amlekhgunj petroleum products pipeline has become the lifeline for Nepal for meeting its energy needs.
In 2019

Before the opening of the pipeline, petroleum products were being transported from India to Nepal by tankers/trucks at 13 pick-up points (7 for products and 6 for LPG). The Raxaul-Birgunjwas the most important trade point between the two countries but the pipeline has reduced the movement of tanker trucks from these points to consumption centres in Nepal.
TALKS OF NEW PIPELINE HAVE STARTED
The two sides are now exploring whether state-owned Indian Oil Corporation could look at another product pipeline running into the northern and eastern parts of the country.
MEETING
The discussion on extending the network of petroleum pipeline and setting up new pipelines was discussed during the meeting of a joint working group early this month. The meeting organised through video conferencing was attended by top government officials from the Indian side including representatives from IndianOil, GAIL, and HPCL.
The Nepalese side was represented by the Ministries of Finance and Foreign Affairs of Nepal and Nepal Oil Corporation (NOC).
A team of officials would soon visit Nepal to explore the possible routes for a new product pipeline. This would be followed by establishing feasibility studies before investment decisions are worked out. There is potential for expanding the pipeline network that would bring a lot of savings for the Himalayan country

India must create goodwill in the minds of the Nepali masses to ensure strong ties between the two countries
Several reports suggest that China hasbeenpayingNGOs in Nepal to write negatively about India-Nepal relations