Kathmandu, February 6:

The Japanese government has approved the utilisation of the ‘counterpart fund’ of Rs 50 million for the execution of a project for the transportation of food grain to remote areas of the country.

The Japanese Embassy said in a release today that the fund has been approved as per a request made by the government of Nepal.

Under the project, Nepal Food Corporation (NFC) will deliver an additional 1,430 metric tons of rice to 18 remote hilly and mountain districts, it said. This will be in addition to NFC’s annual programme of delivering about 7,500 metric tons of rice.

The project was approved to counter the existing food deficit in the country, particularly in remote areas, the release said.

The counterpart fund was established through the financial assistance extended by the Japanese government under the food aid. Nepal has produced rice through this assistance and sold it in the domestic market. The funds collected through the sale of rice were deposited in the counterpart fund.

The fund could be utilised to execute social and economic development projects through consultation between the two governments.