Kathmandu, Nov 4: The Nepal government is preparing to seek concessional loans and grants worth around Rs 300 billion ($2 billion) from India during Prime Minister Balendra Shah’s visit to the neighbouring country in the first week of Mangsir.
According to sources, Nepal plans to seek $1 billion in concessional loans, $500 million in grants and another $500 million for reconstruction of infrastructure damaged by the Bhotekoshi floods, taking the total assistance request to more than $2 billion.
Indian Foreign Secretary Vikram Misri is arriving in Kathmandu on Wednesday to prepare the ground for Shah’s visit. During his two day trip, Nepal is expected to get an indication of the possible size of the assistance package it has been seeking from India.
Two senior officials from the Foreign and Finance ministries told Kantipur that preliminary discussions on the package are expected during Misri’s visit. India’s newly appointed ambassador to Nepal, Sudhakar Dalela, arrived in Kathmandu on Tuesday as part of preparations for the prime minister’s visit.
Finance Minister Swarnim Wagle had presented an initial proposal for the assistance package during his visit to India last Ashoj. Nepal is now preparing to provide India with a detailed list of proposed projects and their funding requirements during Misri’s visit.
A Finance Ministry official said negotiations on the package could conclude during Shah’s visit, with a possible announcement at the time.
“Based on a proposal prepared after consultations with various government agencies, Nepal is planning to seek more than $1 billion in concessional loans from New Delhi,” a source said. “The funds are primarily intended for the construction of transmission lines across the country and the implementation of other infrastructure projects.”
Foreign Minister Shishir Khanal convened a meeting of secretaries from various ministries on Monday to discuss the list of projects Nepal plans to present to India during Misri’s visit.
According to sources, the meeting consolidated the agendas of different ministries and reviewed the progress of projects currently being implemented in Nepal with Indian assistance.
Two government secretaries said the meeting also discussed new projects for which Nepal plans to seek Indian support through concessional loans and grants. The discussions covered Khanal’s visit to India last Jestha, Wagle’s visit last Ashoj and issues raised during bilateral meetings held since then.
People’s News Monitoring Service
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