Nepal and India have signed a Memorandum of Understanding (MOU) for the construction of a 41 km transnational oil pipeline, culminating two decades of intermittent negotiation.

Minister for Commerce and Supplies Sunil Bahadur Thapa and India's Minister of State for Petroleum and Natural Gas Dharmendra Pradhan signed the MoU on behalf of their respective governments.

The MoU will promote bilateral cooperation in the oil and gas sector and secure long term supply of petroleum products to landlocked Nepal in the aftermath of the country's devastating earthquake.

Pradhan said IOC and NOC have to work together to turn the dream project into reality. "Prior to my visit to Nepal, Prime Minister Modi had asked me when the project will be completed," Pradhan said, adding, "I am optimistic that the project will be completed ahead of the set timeframe (30 months) if IOC and NOC work in proper coordination.