India, Nepal hold 10th line of Credit review meeting
Kathmandu, 12 August: The 10th India-Nepal Line of Credit (LOC) Review Meeting was held in Kathmandu on August 10.
From the Indian side, the meeting was led by A. Ajay Kumar, Joint Secretary, (Development Partnership Administration-I), Ministry of External Affairs, and comprised of officials from Embassy and the EXIM Bank. From Nepal side, the meeting was led by Shreekrishna Nepal, Joint Secretary, Ministry of Finance, Government of Nepal (GoN), and included officials from several departments involved in the execution of projects under Government of India (GoI)’s LOCs.
Both sides appreciated the strong cooperation in the India-Nepal Developmental Partnership, including through the LOCs extended to Nepal and reviewed the progress of projects which are at various stages of implementation, as per the press release issued by the Indian Embassy. Site visits to ongoing road projects being built with GOI’s LOCs were also carried out by the visiting Indian delegation on 9 and 11 August 2023.
GoI’s LOC portfolio is more than USD 30 billion and is spread across more than 60 partner countries. In Nepal, it includes four
LOCs US$ 100 million, US$ 250 million, US$ 550 million and US$ 750 million, totaling
US$ 1.65 billion. These LOCs are dedicated towards infrastructure development as prioritized by GoN. So far, these LOCs have financed more than 40 road projects (1105 km completed), 6 projects in hydropower and transmission lines, and several others in housing and reconstruction. Power transmission infrastructure in Nepal has been augmented with major LOC projects, such as Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV) and the DhalkebarBhittamod (400 kV) projects. As of now, upto 452 MW of power export is being carried out through the DhalkebarBhittamod 400 kV line. GoI has also agreed to fund Bheri Corridor, Nijgadh-Inaruwa and Gandak Nepalgunj Transmission lines and associated substations under Indian LOC at an estimated cost of US$ 679.8 million.