While adopting a policy to increase electricity consumption, the government has simultaneously promoted petroleum projects with long-term impacts. To reduce the growing trade deficit and curb pollution, the government has been emphasizing electric stoves and electric vehicles. For this, it has provided incentives ranging from subsidies on electric stoves to customs exemptions for electric vehicles.

The then Finance Minister Janardan Sharma had also banned cooking gas inside the Singha Durbar through the budget of 2022/23. His announcement was to make kitchens in big cities electrified with the slogan ‘Leave LP gas, add electricity’. But this declaration has not been fully implemented. And, billions of petroleum and gas pipeline projects have been advanced.

An example of this is the petroleum pipeline from Siliguri in India to Charali in Jhapa, Nepal and the petroleum pipeline from Amlekhganj to Lothar in Chitwan. During his visit to India last week, Industry, Commerce and Supply Minister Damodar Bhandari proposed to build a gas pipeline.

After the Motihari to Amlekhgunj petroleum pipeline towards India was formally put into operation on August 24, 2076, Nepal Oil Corporation claims that there has been ease in transportation and reduction in technical losses. It is claimed that around 1 billion rupees is saved every year by the transportation of diesel along with the reduction in pollution due to transportation through pipelines. Taking this as a basis, the government is making a long-term project as well.

The government has also been raising the slogan of electricity consumption. Experts say that this makes the government’s policy unclear. “Looking at the policy and work of the government, there is a contradiction, it seems that it does one thing and another. Economist Keshav Acharya said that in order to increase the consumption of electricity by reducing fuel import, a discount has been given on the import of electric stoves and vehicles. This has increased the trade deficit. The government itself is confused in its policy.

Import of petroleum products plays a major role in increasing the trade deficit. Because the first number of imported goods is petroleum products. Among the imported goods, petroleum products are the first number. According to the data of the customs department, in the 4 months of the current financial year, diesel worth 29.4 billion, petrol worth 21.56 billion and cooking LP gas worth 18.85 billion have been imported. Aviation fuel worth 6.55 billion has been imported. Importing fuel-based vehicles incurs a tax of around 300 percent. But the import has increased.

Even though customs exemptions have been given to electric vehicles, the general public has not received exemptions from businessmen. The government has not been able to build enough infrastructure for electric vehicles, i.e. charging stations. That is why diesel and petrol have become vehicle options. On this basis, the corporation has accelerated the pipeline and fuel storage.

Even if we talk about electricity, it will take more than 25 years to displace fuel. The time of fuel is not running out,” said Chandika Prasad Bhatt, executive director of NIG, “When it comes to gas, the demand and consumption has increased by 10 percent in the last 5 years. The country has benefited by building the petroleum pipeline. He said that it is necessary to build a pipeline because Indian gas is now being transported by bullets.

‘It is necessary, but it costs more than 12 billion rupees to build a gas pipeline and storage. Its modality is yet to be discussed,” he said. Some petroleum projects are going to be built by India. It has also put an end to tanker cartelisation. In order to expand the second phase of the petroleum pipeline, an agreement has been signed with India to build two pipelines and a smart greenfield terminal (storage house) worth 15 billion. According to the corporation, there has been an agreement that these projects will be built by India with subsidies.

A 50 km long petroleum pipeline will be built from Siliguri in India to Charali in Jhapa, Nepal. An agreement has also been reached to build a smart greenfield terminal with a capacity of 18,900 kiloliters at Charali in Jhapa. It is said that petrol and diesel will be stored there after the pipeline is built. It is estimated that construction of Amlekhganj-Chitwan Petroleum Pipeline will cost 4.38 billion rupees (274 crore rupees), 4.6 billion rupees (288 crore rupees) for construction of Siliguri-Jhapa Petroleum Pipeline and 8.3 billion rupees (502 crore rupees) for construction of greenfield terminal at Charali.

There is a plan to build a smart greenfield terminal with a capacity of 91 thousand 900 kiloliters at Lothar in Chitwan. But Lothar’s greenfield terminal will be built with the corporation’s own investment. Petrol, diesel, kerosene and jet fuel will be stored there. According to the study, it will cost about 9 billion 88 crores (618 crores).

Last week, during his visit to India, Industry Minister Bhandari has also proposed to make grants with India. The corporation has 16 bigha of land in Sarlahi, there are plans to build a gas pipeline and storage there. According to the corporation, 6 billion is being spent annually while transporting gas from Bullets.

The corporation says that billions of rupees have been lost in the transportation of gas due to the monopoly of the Indian transporter.

Since fuel cannot be replaced immediately, Minister Bhandari said that the pipeline is necessary to facilitate the storage and supply of fuel. “Petroleum material cannot be displaced immediately, it takes a long time. Therefore, in terms of reliable transportation, the pipeline is equally important,” Minister Bhandari said, “based on the same basis, fuel storage is also important. Pipeline is the suitable means of transportation.’

Corporation along with the pipeline, Bhairahawa depot, Dhangadhi depot and Sinamangal depot are also being transferred. According to the Electricity Authority, 3404 MW electricity has been connected to the national transmission line. About 1400 megawatts of electricity is generated per day, while the demand is 1600 to 1700 megawatts.

To fulfill that, 100 to 150 megawatts of electricity is imported from India per day. Electricity is exported during winter. Permission has been granted to export 40 MW to Bangladesh and 941 MW to India. More than 10 percent of it can be exported. According to the authority’s data, electricity worth 17.6 billion was exported last year. And electricity worth 16 billion 93 crores was received. Experts say that this also has a high potential for electricity.

Source: Kantipur