Nepal seeks over $2 billion in loans and grants from India — Kathmandu Post
Nepal is seeking an economic package from India worth more than $2 billion in the form of credit lines and grants. Nepalese authorities plan to discuss the details of the proposal during the visit to Kathmandu by Indian Foreign Secretary Vikram Misri, Kathmandu Post reports.
According to the publication, Nepal wants to secure more than $1 billion through credit lines, primarily for the construction of domestic power transmission lines and other infrastructure projects. The Nepalese side is also requesting a $500 million grant to upgrade the Siddhartha Highway, which connects the Indian border town of Sunauli with Pokhara.
Funds for flood recovery
Nepal also expects to receive another $500 million, most likely in the form of a grant, for the reconstruction and restoration of infrastructure damaged by flooding in Bhotekoshi on August 26. Nepalese officials are to provide the Indian delegation with a list of priority projects for consideration.
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According to Kathmandu Post, negotiations on the package may be completed during Nepalese Prime Minister Balendra Shah's first official bilateral visit to India. The trip is preliminarily expected on November 22, but no formal announcement has yet been made.
Problems with previous loans
India had previously offered Nepal two credit lines: the first was announced during Prime Minister Narendra Modi's state visit to Nepal in 2014, and the second at a donor conference after the 2015 earthquake. However, Nepal was unable to fully use these funds because of conditions set by the Indian side.
Former Nepalese Ambassador to India Shankar Sharma said that the use of concessional loans was hindered by requirements to involve Indian raw materials, technical specialists, engineers and equipment. During Shah's expected visit, the sides may also inaugurate several India-funded facilities and launch new projects, including the construction of the Lower Arun hydropower project and an oil pipeline from India's Siliguri to Jhapa in Nepal.
