KATHMANDU, March 27 -- India has refused to provide a grant of about Rs 17 billion as per the agreement reached between the two countries to build two petroleum pipelines and a fuel storage facility in Nepal. The state-owned Indian Oil Corporation (IOC) is reluctant to proceed with the project with grants as per the agreement reached with India during Prime Minister Pushpa Kamal Dahal's official visit in May last year.

Despite several discussions between the officials of Nepal Oil Corporation (NOC) and IOC to implement the project, the project could not proceed after IOC hesitated to provide the grant. As per the agreement, the IOC should construct the Amlekhgunj-Chitwan Petroleum Pipeline, Siliguri-Jhapa Petroleum Pipeline and Greenfiel...