Govt stops direct investment by Indian Embassy

  • Get News Alerts

Indian envoy to Nepal Manjeev Singh Puri attending a foundation laying function of Adarsha Multiple Campus in Dhading. Photo Courtesty: Indian Embassy

The Finance Ministry has stopped direct Indian investment on small development projects through the Indian Embassy in Nepal. The ministry has already written to the Indian Embassy that the agreement that allows the latter to select projects in Nepal and invest up to Rs 50 million on a single project will not be renewed soon.

The embassy had written to the ministry on August 5 for renewal of the agreement about small development projects before it was to expire. The ministry in response has written that the agreement cannot be signed for now as legislation about how to receive foreign investment at district and local levels has not been made after the country went into federalism.

The embassy used to coordinate with district development committees while investing on such projects selected by it. The ministry's letter adds that district development committees have already been dissolved, and the mechanism through which to spend such investment and how to coordinate with the local government have yet to be decided.

"We have told them that the both sides need to talk about the mechanism for spending in the changed context, and sign a new agreement if needed accordingly," Chief at the International Economic Cooperation Division under the ministry Baikuntha Aryal told Setopati.

The agreement, first signed in 2003 when Surya Bahadur Thapa was prime minister, allowing direct investment of embassy on small projects has to be renewed every three years. It has already been renewed four times. The agreement initially had set a limit of Rs 30 million for direct investment but the ceiling was raised to Rs 50 million when it was renewed by the Baburam Bhattarai government.

The agreement has been opposed right from the beginning stating it undermines Nepal's sovereignty. The then foreign minister in the Bhattarai government Narayan Kaji Shrestha had even talked with Indian team about annulment of the agreement.

India has invested billions on over 500 small projects including schools, health posts, rural roads and others under the agreement. 


More News

  • Left alliance stronger in 2 constituencies in Kailali, close fight with NC in 3

    Left alliance stronger in 2 constituencies in Kailali, close fight with NC in 3 Nepali Congress (NC) will have it a little easier in Kalilali district of Province 7 in the upcoming federal elections after unification with Nepal Democratic Forum (NDF) led by Bijay Kumar Gachchhedar.

  • APF mobilized for polls security arrangement

    The Armed Police Force (APF) has been mobilized in Nuwakot to consolidate security arrangements in view of elections of the House of Representatives and State Assemblies.

  • 'Increase investment in technical education'

    Minister for State for Education Sheshnath Adhikari expressed his commitment that the government would spur investment in the area of technical education. Speaking at a program organized by Sanchar Kendra Nepal on 'Technical education is today's need', Adhikari stressed the need for the state to augment investment in technical and vocational education so as to reduce the unemployment rate in the country.

  • Xi's political ideology to be taught in Chinese schools

    Xi's political ideology to be taught in Chinese schools Chinese President Xi Jinping's political ideology will soon be incorporated into the curriculum across China, a move analysts believe would solidify his image as a transformative leader and help in the rise of nationalism among the youth.

  • China’s Communist Party inserts Xi into party constitution

    China’s Communist Party inserts Xi into party constitution China’s ruling Communist Party amended its constitution to add President Xi Jinping’s name and ideology Tuesday in an extension of his formidable political sway.


  • Amendment of Education Act: A betrayal to capable candidates Amendment of Education Act: A betrayal to capable candidates

    Not all, but many of the temporary teachers who have been wishing to become permanent, no doubt, appointed on the basis of their political ideologies. They couldn't succeed in the examinations despite repeated attempts. They carried the bags of those parties during their teaching career.

    Manoj Sapkota

  • The Doklam dilemma The Doklam dilemma

    Being a buffer state between the two giant neighbors, Nepal should conduct its foreign policy vis-à-vis China and India in a very sensitive manner. Nepal has always maintained that it would not allow its soil to be used against any neighbor. At the same time, Nepal should make sure that its own national interests are never compromised.

    Gaurab Shumsher Thapa


  • To dogs, with love To dogs, with love

    Many find talking about basic animal rights stupid when no basic rights of people are guaranteed. However, there are still few people who are aware how humane behavior has turned toward cruelty and indifference which can be vividly seen through the way street dogs and other animals are abused around us.

    Sujita Shrestha

  • Unanswered questions on recent leftist alliance Unanswered questions on recent leftist alliance

    Although they seem to be very much communist while in opposition, whether about the 'Indian semi-colonial status' in Nepal or American hegemony, this has never been evident while they actually come into power and rule Nepal.

    Dr Chandra Sharma Poudyal

Readers Column

  • What we need to learn from Thailand?

    Thailand is a developing country. But it seemed like a developed country at first sight. It is hard to believe that Thailand is a developing country. There are big buildings, and clean and broad roads. The city is clean with no trace of pollution.

  • Traffic Police in Kathmandu

    As busy and hassling as the traffic system in Kathmandu is, the Traffic Police here have to handle an equally strenuous job. Over 1,400 traffic officers in and around the Kathmandu Valley battle against the pestering traffic and air pollution each day.