The PM Narendra Modi government plans to help replicate its flagship Pradhan Mantri Ujjwala Yojana (PMUY) in the neighboring country, and extend the natural gas pipeline to deepen its bilateral ties with the Himalayan nation of Nepal and promote usage of liquefied petroleum gas (LPG) there.
Officials from both the countries got together at the event to renew supply agreement between Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC).
The Indian companies will share their experience and expertise on the scheme to their Nepalese counterpart, a nation where 70-75% of LPG is used for domestic consumption.
The first-year target was achieved within eight months of the launch of the scheme which aims 5 crore, such families, to be covered within three years. The government enhanced its budgetary support to the scheme to R2,500crore for FY18 compared with R2,000 crore for FY17.
Under the renewed agreement between IOC and NOC, which will run for the next five years, India has assured Nepal to support and continue hydrocarbon supply to the land-locked nation.
“The Indian government thinks supplying energy to Nepal is its responsibility and not a business deal,” said Pradhan.
The agreement also talks about extending the Raxaul-Amlekhgunj oil pipeline by another 70 km inside Nepal wherein the cost will be borne by the neighboring country and expertise will be provided by IOC.
A presentation was later made by IOC on half of the Indian government and oil marketing companies to the ministers and officials from the Nepalese government. The Indian companies will share their experience and expertise on the scheme to their Nepalese counterpart, a nation where 70-75% of LPG is used for domestic consumption.