Nepal and India convened the 10th review meeting for the line of credit

August 13, 2023, 10:56:50 AM |

KATHMANDU: The Indian delegation, headed by A. Ajay Kumar, joint secretary of the Ministry of External Affairs’ Development Partnership Administration-I, was joined by officials from the Indian Embassy and EXIM Bank.

On Nepal’s side, Shreekrishna Nepal, joint secretary of the Ministry of Finance, Government of Nepal (GoN), led the discussions, which included representatives from various departments involved in implementing projects under India’s LOCs.

Both parties expressed their satisfaction with the robust cooperation within the India-Nepal Developmental Partnership. They assessed the progress of projects at different stages of execution, which have been made possible through the LOCs extended to Nepal.

The Indian delegates also conducted site visits to the ongoing road projects financed by GOI’s LOC on Wednesday and Friday.

GOI’s LOC portfolio encompasses over USD 30 billion, spanning across more than 60 partner countries. In Nepal, it encompasses four LOCs: USD 100 million, USD 250 million, USD 550 million, and USD 750 million, totaling USD 1.65 billion.

These LOCs are exclusively directed toward infrastructure development, aligned with GoN’s priorities. To date, they have funded over 40 completed road projects (covering a distance of 1,105 km), 6 projects in hydropower and transmission lines, and several initiatives in housing and reconstruction.

Significant additions to power transmission infrastructure, such as the Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV), and the Dhalkebar-Bhittamod (400 kV) projects, have been realized through substantial LOC endeavors. Presently, Nepal is exporting up to 452 MW of electricity using the Dhalkebar-Bhittamod 400 kV line.

Furthermore, GOI has committed to funding the Bheri Corridor, Nijgadh-Inaruwa, and Gandak-Nepalgunj transmission lines, along with associated substations, under the Indian LOC. These endeavors are estimated to cost around USD 679.8 million.

Fiscal Nepal |

Sunday August 13, 2023, 10:56:50 AM |