Prime Minister Narendra Modi and Bangladesh premier Sheikh Hasina on Saturday inaugurated a Rs 377-crore pipeline to transport diesel from India to northern Bangladesh, cutting cost and reducing carbon footprint.

The pipeline will start a new chapter in India-Bangladesh relations, Modi said at the inauguration.

Currently, diesel is supplied to Bangladesh through a 512-km rail route. The 131.5-km pipeline will supply up to 1 million tonnes per annum of diesel from Numaligarh in Assam to Bangladesh.

This would not just help save on transportation costs but also reduce the carbon footprint of moving the fuel, Modi said.

The construction of the pipeline project started in 2018. It is the first cross-border energy pipeline between the two neighbours. Of the total cost of Rs 377 crore of the project, the Rs 285 crore cost of Bangladesh section of the pipeline has been borne by the government of India under grant assistance.

The IBFPL will be transporting 1 million tonnes per annum (MMTPA) of diesel to seven districts in Northern Bangladesh.

The pipeline will run from the Siliguri-based marketing terminal of the Numaligarh Refinery Limited (NRL) to the Parbatipur depot of Bangladesh Petroleum Corporation (BPC). The fuel transport deal between the two countries will be in force for 15 years with an option for further extension during subsequent phases on the agreement of both countries.

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