Modi pledges $1 billion concessional line of credit to Nepal


    Notes exchanged on ToR of Pancheshwar

    KATHMANDU, Aug 3:Expressing solidarity with Nepal´s development endeavors, India has announced to provide US$ 1 billion concessional Line of Credit (LoC) to invest in priority areas such as infrastructure and hydropower development.

    Visiting Indian Prime Minister Narendra Modi made the announcement as a part of Indian support to Nepal´s development endeavors during a bilateral meeting held between Nepal and India at the Prime Minister´s Office in Singha Durbar on Sunday. The concessional loan will be extended to Nepal through Indian Export Import Bank. 

    Minister for Foreign Affairs Mahendra Bahadur Pandey said Nepal can use the amount in prioritized projects identified by the government. “Prime Minister Modi has announced the loan for the development of Nepal´s infrastructures and hydropower projects,” Pandey told media persons after the bilateral meeting. 

    This amount is separate from previous concessional loan assistance that India has already extended to Nepal. Earlier, India had extended US$250 million as concessional loan to Nepal during the visit of then Prime Minister Dr Baburam Bhattarai to India in 2011. 

    The amount has been used to expedite construction of 11 road projects, the transmission line in Koshi Corridor and Solu Corridor and Rahughat Hydropower Project in Myagdi.

    Source : Republica