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Wednesday, May 29, 2024

India’s Line of Credit to Nepal crosses $1.65 bn mark

The figure was released on Friday during the 10th India-Nepal LOC Review Meeting held in Kathmandu. 

KATHMANDU:

India’s Line of Credit (LOC) spending on various projects in Nepal has crossed the $1.65 billion mark.

The figure was released on Friday during the 10th India-Nepal LOC Review Meeting held in Kathmandu.

The government of India’s LOC portfolio is more than $30 billion and is spread across more than 60 partner countries, said a statement issued by the Embassy of India in Kathmandu.

In Nepal, it includes four LOCs: $100 million, $250 million, $550 million and  750 million, totalling $1.65 billion.

The projects funded under the LOC are dedicated towards infrastructure development as prioritised by the government of Nepal, the statement said, adding that so far the LOCs have financed more than 40 road projects (1,105 km completed), six projects in hydropower and transmission lines, and several others in housing and reconstruction.

India is the largest development partner of Nepal as well as a trading partner. Major chunks of the Indian LOC go for cross-border power transmission lines.

Power transmission infrastructure in Nepal has been augmented with a major line of credit projects, such as Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV) and the Dhalkebar-Bhittamod (400 kV) projects.

“As of now, upto 452 MW of power export is being carried out through the Dhalkebar-Bhittamod 400 kV line. The government of India has also agreed to fund Bheri Corridor, Nijgadh-Inaruwa and Gandak Nepalgunj Transmission lines and associated substations under Indian LOC at an estimated cost of $ 679.8 million,” the statement added.

Both sides appreciated the strong cooperation in the India-Nepal Developmental Partnership, including through the LOCs extended to Nepal and reviewed the progress of projects which are at various stages of implementation.

From the Indian side, the meeting was led by Ajay Kumar, Joint Secretary, (Development Partnership Administration-I), Ministry of External Affairs; and other officials from the Embassy of India and the EXIM Bank.

From the Nepal side, the meeting was led by Shreekrishna Nepal, Joint Secretary, Ministry of Finance, Government of Nepal (GoN), and included officials from several departments involved in the execution of projects under the Indian LOC.

The Indian delegation also visited the sites of some road projects funded under the LOC. (IANS)

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