Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) have signed a MOU on Aug 25, 2015 at Kathmandu. The MoU was signed for construction of 1.3 MMTPA capacity Raxaul-Amlekhgunj petroleum product pipeline alongwith some works at Amlekhganj Petroleum Depot of NOC.

The estimated cost of this project is Rs. 2.75 billion and the completion period is 30 months after receipt of statutory clearances. This pipeline will ensure long term supply of petroleum products to Nepal from Indian Oil Corporation as well as stability of supplies from India to Nepal, which will benefit both the countries.

The MoU was signed subsequent to signing of an MOU between Government of India and Government of Nepal on August 24, 2015.

Shares of the company gained Rs 16.5, or 4.36%, to settle at Rs 394.75. The total volume of shares traded was 1,735,616 at the BSE (Tuesday).