Kathmandu, August 12, 2023 – The 10th India-Nepal Line of Credit (LOC) Review Meeting marked a significant step in the continuing partnership between the two nations, with discussions centered around bolstering developmental initiatives. The meeting, held on August 10, 2023, in Kathmandu, served as a platform for both sides to reflect on the strong cooperation in the India-Nepal Developmental Partnership and assess the advancement of various projects under India’s LOCs.
Led by Mr. A. Ajay Kumar, Joint Secretary of Development Partnership Administration-I at the Ministry of External Affairs from the Indian side, the delegation included officials from the Embassy and the EXIM Bank. From Nepal, Mr. Shreekrishna Nepal, Joint Secretary of the Ministry of Finance, spearheaded the meeting, alongside representatives from various departments responsible for executing projects under the Government of India’s LOCs.
The collaborative spirit between India and Nepal was palpable as both sides expressed appreciation for the robust cooperation witnessed through the India-Nepal Developmental Partnership. The LOCs extended to Nepal were lauded, and the progress of diverse projects at varying stages of implementation was thoroughly reviewed.
In an effort to gain firsthand insights into the ongoing projects, the Indian delegation embarked on site visits to road projects that are currently under construction with the support of India’s LOCs. These visits, which occurred on August 9 and 11, 2023, provided an opportunity for the delegation to witness the tangible impact of their collaborative efforts.
India’s LOC portfolio, a testament to its commitment to global development, surpasses USD 30 billion and spans across more than 60 partner countries. Within Nepal, this portfolio includes four LOCs with a total value of USD 1.65 billion: US$ 100 million, US$ 250 million, US$ 550 million, and US$ 750 million. These funds have been dedicated to advancing infrastructure development in alignment with Nepal’s priorities.
A noteworthy achievement of these LOCs is the financing of over 40 road projects, covering a distance of 1105 km, along with contributions to projects in hydropower, transmission lines, housing, and reconstruction. The augmentation of Nepal’s power transmission infrastructure has been particularly impactful, with major projects such as Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV), and the Dhalkebar-Bhittamod (400 kV) line. The latter has enabled the export of up to 452 MW of power.
Continuing their commitment, India has also agreed to fund essential projects like the Bheri Corridor, Nijgadh-Inaruwa, and Gandak Nepalgunj Transmission lines, along with associated substations. This initiative, estimated to cost US$ 679.8 million, is set to further strengthen Nepal’s power infrastructure and contribute to its sustainable development.
The 10th India-Nepal LOC Review Meeting has not only showcased the collaborative synergy between the two nations but also highlighted the significant strides made in development projects that are poised to positively impact the lives of Nepali citizens. As the partnership continues to flourish, it stands as a testament to the shared commitment of India and Nepal towards fostering growth and prosperity.
