India and Bangladesh enter into an agreement on an energy pipeline

India and its neighboring country Bangladesh launched IBFP, India-Bangladesh Friendship Pipeline. This agreement was proposed on Saturday through video-conferencing. The pipeline will save the time and cost of sending fuel from India to Bangladesh.
IBFP will improve energy connectivity between the two nations. This pipeline has a length of 125 km and will help in the development of both countries. It lies 125 km inside the territory of Bangladesh and 5km in India.
Words of PM Modi in a virtual event
In a recent event, PM Modi said that the inauguration of India Bangladesh Friendship Pipeline is an important milestone in the development journey of both countries. It is one of the most remarkable moments for both nations.
This pipeline has the capacity of supplying about 1 million metric tonnes of fuel per year from Assam to Bangladesh. The PM added that this Friendship pipeline will contribute to the development of Bangladesh to a great extent.
The groundbreaking ceremony for this pipeline took place in the year 2018. In this ceremony, the PMs of both nations joined to accelerate the development of the two countries.
Cost of the pipeline
The total cost incurred on the construction of IBFP is around INR 377 crore. The Indian government has granted assistance of INR 285 crore for building this pipeline. It will help in exporting fuel to Dhaka and other parts of Bangladesh from India.
Reduction in the cost of fuel delivery
Bangladesh used to buy around 5 lakh tonnes of fuel from India. The cost of transporting one barrel of fuel from the port city was 8 dollars. It will now be reduced to 5 dollars after the inauguration of this pipeline.
The delivery time will also reduce to only one hour now. This pipeline will ensure the speedy delivery of fuel to 16 parts of northern Bangladesh at a minimum cost.