KATHMANDU, March 26 -- According to the agreement to build two petroleum pipelines and a fuel storage facility, India has refused to give a subsidy of about Rs 17 billion. According to the agreement with the Government of India last May, the Indian Oil Corporation (IOC) has hesitated to proceed with the project with subsidies. IOC is a Government of India-owned company.

Despite several discussions between the officials of Nepal Oil Corporation (NOC) and IOC to implement the project, the project could not proceed after IOC hesitated to provide the grant. According to the agreement, Amlekhgunj-Chitwan Petroleum Pipeline, Siliguri-Jhapa Petroleum Pipeline and Greenfield Terminal at Charali in Jhapa should be constructed by IOC with subsidy....