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Indo-Nepal Petroleum Pipeline

Paper: General Studies 2

Topic: India and its neighbourhood – relations

Why in News?

Prime Minister Narendra Modi and his Nepal counterpart KP Sharma Oli jointly inaugurated South Asia’s first cross-border petroleum products pipeline from Motihari(bihar) to Amlekhgunj(Nepal)

Motihari Amlekhgunj Pipeline:

  • It will transport fuel from Barauni refinery in Bihar’s Begusarai district to Amalekhgunj in southeastern Nepal
  • The 69-km pipeline will drastically reduce the cost of transporting fuel to landlocked Nepal from India
  • It will bring both neighbouring nations together on economic and developmental grounds, as well as strategically this move will counter Chinese efforts to influence South Asia through Nepal

Chabahar Port

Paper: General Studies 2

Topic: India and its Neighbourhood – relations

Why in News?

India has shut down oil imports from Iran owing to sanctions imposed by the United States. According to Iranian officials, the impact on bilateral trade created by this move will impact the Chabahar port project and its profitability. US had given a waiver to Chabahar port from its sanctions

Chabahar port Project:

  • Iran’s Chabahar port is located on the Gulf of Oman and is the only oceanic port of the country
  • The project was given to India in 2016 through an intergovernmental agreement

Chabahar port’s Importance to India:

  • India believes the port is critical to its interests and wants to develop it as a counter to Pakistan’s Gwadar port which was built with Chinese assistance
  • The port will allow India to bypass Pakistan to transport goods to Afghanistan and Central Asia using a sea-land route
  • Chabahar Port lies in the Persian Gulf in Iran and will help India in expanding its maritime commerce in the region
  • It also provides opportunities to Indian companies to penetrate and enhance their footprint in the region
  • It is located 76 nautical miles (less than 150km) west of the Pakistani port of Gwadar, being developed by China. This makes it ideal for keeping track of Chinese or Pakistani military activity based out of Gwadar
  • The port will cut transport costs/time for Indian goods by a third
  • From Chabahar, the existing Iranian road network can link up to Zaranj in Afghanistan, about 883 kms from the port. The Zaranj-Delaram road constructed by India in 2009 can give access to Afghanistan’s Garland Highway, setting up road access to four major cities in Afghanistan — Herat, Kandahar, Kabul and Mazar-e-Sharif


China-Pakistan Economic corridor

Paper: General Studies 2

Topic: India and its neighbourhood – relations

Why in News?

  • India rejected the reference to Jammu and Kashmir in the latest China-Pakistan joint statement and called on both countries to stop activities related to the China-Pakistan Economic Corridor (CPEC) in Pakistan-occupied Kashmir (PoK)


  • China–Pakistan Economic Corridor (CPEC) is a collection of infrastructure projects that are currently under construction throughout Pakistan with Chinese investment of about $60 billion
  • The project will link China’s Xinjiang Province to Gwadar port in Pakistan, providing access to Arabian sea bypassing majority of sea route for exports of China, making them more competitive
  • This will further increase Chinese strategic presence in the Indian Ocean region – particularly Arabian sea, which hosts crucial sea line of communications impacting Indian Energy Security
  • CPEC is one arm of the larger One Belt One Road project of China, under which it is expanding connectivity and other infrastructure to several nations in order to boost its exports and strategic ties with these nations

CPEC – India’s Territory

  • CPEC passes through Shaksgam valley in Gilgit-Baltistan region of POK, which as India holds, belongs to India as part of Jammu and Kashmir
  • The construction of CPEC has made China a serious stakeholder in Kashmir even though India has maintained that entire Jammu and Kashmir is its integral part