Nepal PM seeks $2B package ahead of visit

New Delhi: Nepal is preparing to seek a $2 billion economic package from India, comprising lines of credit and grants, ahead of Prime Minister Balen Shah's visit to India from November 22 to 24.

The Nepal government has held internal discussions on the package, which is understood to have been discussed during foreign secretary Vikram Misri's visit to Kathmandu this week, ET has learnt.

The proposed package includes $1 billion in lines of credit for power and other infrastructure projects in the Himalayan nation, according to sources in Kathmandu.


Nepal is also seeking a $500 million grant from India to upgrade the Siddhartha Highway, which connects Sunauli on the Indian border with Pokhara. Another $500 million grant is being sought for post-flood reconstruction, ET has learnt.

Over the past seven decades, India-Nepal development cooperation has expanded and diversified across sectors such as health, education, power, archives, archaeology, connectivity, trade, agriculture, cultural heritage preservation and capacity building.

Projects under the bilateral development partnership are based on Nepal's needs and priorities and are spread across the country, an official told ET.

During Shah's visit, Nepal will also push for additional air routes between the two countries. It has been seeking to facilitate international flights to Gautam Buddha International Airport in Bhairahawa and Pokhara International Airport.

The Pancheshwar Multipurpose Project, conceived under the 1996 Mahakali Treaty, is another item on the agenda for Shah's visit. Several India-funded projects are expected to be inaugurated during the visit.