The move comes after the Nepalese cabinet approved its proposal to operate the pipeline project as a separate ownership/join operation model with Indian Oil Corporation after dropping the previous joint-venture model.
NOC will construct the 39 km of pipeline on the Nepalese side of the border with technical input from IOC, while IOC will construct the 2 km of pipeline on the Indian side of the border as well as a pumping station in Raxaul.