Oct 03, Kathmandu- An agreement has been signed between Nepal and India for the construction of petroleum pipelines and fuel storage sites.

Nepal Oil Corporation and Indian Oil Corporation (IOC) have informed that an agreement has been reached in Delhi, India on Thursday for the construction of pipelines and storage houses.

Accordingly, a new petroleum pipeline from Siliguri to Jhapa, the extension of the Bara Amlekhganj pipeline to Chitwan and a fuel storage house in Jhapa will be built by the Indian Oil Corporation with a subsidy of around 15 billion.

The agreement letter was signed by Dr. Chandika Bhatta, Executive Director of Nepal Oil Corporation and Senthal Kumar, Managing Director of IOC Pipeline Project.

According to the corporation, an agreement has been reached that three projects will be built by IOC with a grant and the storage site of Chitwan will be built with the corporation's investment.