KATHMANDU, MARCH 31

The ninth Nepal-India LoC review meeting was held here on Wednesday. The meeting was aimed at reviewing the progress of projects being undertaken in Nepal under the government of India (GoI)'s lines of credit (LoCs), ensuring better project implementation and more effective utilisation of the large amount remaining under the said LoCs.

From Nepal side, the meeting was led by Ishwori Prasad Aryal, joint secretary (International Economic Cooperation Coordination Division), Ministry of Finance, and included officials from several departments involved in the execution of projects under GoI's LoCs.

From the Indian side, the meeting was led by Sridharan Madhusudhanan, joint secretary (Development Partnership Administration – I), Ministry of External Affairs, and comprised of officials from the Indian Embassy and the EXIM Bank.

The LoC review meeting was preceded by inauguration of substations under the Modi-Lekhnath Transmission Line and Substations Project in Laha Chowk, Kaski district, Nepal on Monday. The project, being financed under the LoC of $250 million (LoC II), involves construction of a 42 km long power transmission line and its associated substations at New Modi, LahaChowk and Lekhnath in central part of Nepal. The $20 million project is executed by KPTL Ltd and ABB India. The substations package is completed while the transmission line package is likely to be completed soon. The inauguration was done by Minister for Energy, Water Resources and Irrigation Pampha Bhusal, in the presence of senior government officials, Indian delegation and local representatives.

The LoC review meeting was followed by a workshop conducted by EXIM Bank of India here on Wednesday. Joint Secretary Madhusudhanan gave the opening remarks, which were followed by detailed discussions between LoC project contractors and representatives from Nepal government's departments implementing the LoC projects. The workshop was aimed at familiarising stakeholders in Nepal with India's LoC policy framework and guidelines and under Indian Development and Economic Assistance Scheme (IDEAS). The workshop also discussed specific issues facing the GoI LoC projects in Nepal. During the workshop, EXIM Bank of India also shared its experience of implementing projects in other countries and suggested ways towards better utilisation of GoI LoCs in Nepal.

The GoI's lines of credit portfolio is more than $30 billion, spread across more than 60 partner countries. In Nepal, it includes four LoCs: $100 million, $250 million, $550 million and $750 million, totalling $1.65 billion.

These LoCs are dedicated towards execution of infrastructure development projects and post-earthquake re-construction projects as prioritised by the Nepal government. So far, these LoCs have financed more than 40 road projects, another nine projects in hydropower, transmission lines and irrigation, and several others in housing and reconstruction.

Many of these projects are already completed, including some iconic and major projects. Development of power transmission infrastructure has acquired particular salience in GoI LoCs in Nepal, with major projects such as Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV) and the Dhalkebar Bhittamod (400 kV) projects.

A version of this article appears in the print on April 1, 2022, of The Himalayan Times.