Guwahati: Work has started on the India-Bangladesh Friendship Product Pipeline (IBFPL) from Numaligarh Refinery Ltd's Marketing Terminal in Siliguri to Parbatipur in Bangladesh.

The Prime Ministers of India and Bangladesh, Narendra Modi and Sheikh Hasina, on Tuesday attended the ground-breaking ceremony of the 129.5km India-Bangladesh Friendship pipeline from NRL's marketing terminal in Siliguri to Parbatipur in Bang-ladesh through video conferencing. Modi and Hasina jointly unveiled the e-plaque.

The pipeline will be fully operational within 30 months at a cost of Rs 346 crore. At present, high-speed diesel is being supplied from Siliguri marketing terminal through rail rakes. The completion of this pipeline will ensure an assured, sustainable and eco-friendly supply to Bangladesh.

The project will replace the existing practice of sending diesel by rail covering 510km.

"The pipeline will supply high-speed diesel and reduce transportation time, remove losses and pilferage significantly," a government statement said. This is the second trans-national pipeline after Motihari-Amlekhgunj pipe-line in Nepal. The 69km-long IOC Motihari-Amlekhgunj pipeline project involves laying of a 10.75-inch diameter cross-country pipeline from Motihari in Bihar to Amlekhganj in Nepal, with pumping facilities at Motihari.

The design capacity of the pipeline is 2 million tonnes per annum. Of the total length, 32.7km of pipeline will be laid in the Indian territory and 36.2 km will be laid in Nepal.

The Prime Minister described the cooperation between the two countries as an example for the world. He said the two countries are neighbours, geographically; and family, emotionally. He said the proposed pipeline will further energise not just Bangladesh's economy, but also the relationship between the two countries.He said though the pipeline is being constructed through financing by India, the project when completed will be dedicated to the Bangladesh government and its people.

The capacity of the pipeline will be 1 million metric tonnes per annum.

Union petroleum and natural gas minister Dharmendra Pradhan tweeted, "Oil and Gas engagements are an important pillar of the growing bilateral cooperation between India and Bangladesh. The Neighbourhood First policy of PM Narendra Modi has given an impetus & provided Notun Projonmo-Nayi Disha to our bilateral relations."