If things go as planned, laying of an petroleum pipeline from India’s Raxaul to Nepal’s Amlekhgunj to supply petrol, diesel and aviation fuel will begin from mid-January 2017, Nepal Oil Corporation (NOC) has said.

The state-owned oil monopoly said a detailed engineering report of the much-delayed 41-km cross-border

pipeline project is likely to be completed by the next week.

NOC Spokesperson Bhanubhakta Khanal said the project’s developer—Indian Oil Corporation (IOC)—has agreed to complete the tendering process by the first week of December after the survey and detailed engineering report is completed.

Currently, India’s SM Consultant has been conducting the survey of the project. Of the total length, 39 km lies on the Nepali side.

With the IOC insisting on a 15-year oil agreement to make the project economically viable, NOC officials said they have agreed to renew the oil consignment agreement every five years.

According to Khanal, the survey is currently studying the status of the project’s land encroached by the people and the position of rivers, rivulets and electricity transmission lines along the pipeline route. “We have to clear the roadside based on the survey report.”

According to NOC, it has sent a letter to the Ministry of Physical Infrastructure and Transport through the Ministry of Supplies requesting to clear the road for

the proposed pipeline as soon as possible.

Khanal said there were a number of houses constructed on the encroached land along the Amlekhgunj-Raxaul highway, where the pipeline will pass through. He said areas along the Pathlaiya-Parwanipur road have been recently cleared.

The government has to allocate 33.6 hectares for the construction of the project.

In August 2015, Nepal and India had signed a memorandum of understanding for the construction of the oil pipeline. The pipeline, which has remained 20 years in the planning, is expected to ensure regular fuel supplies in Nepal which are known to be disrupted by recurring road blocks and strikes.

The Rs4.40-billion project is expected to be completed within 30 months after work begins. IOC will be injecting Rs3.20 billion into the project as a grant while NOC will invest the rest of the amount for the upgradation of its Amlekhgunj depot.