Extension of limit for India's HICD Project made under legislative jurisdiction: Nepal PM

Answering the question about the extension of HICD Projects up to Rs 200 million raised by opposition MP alleging rules were bypassed, the Prime Minister reiterated that the decision has been made within the law.

"Honorable member of parliament Gita Basent raised the issue stating the government has given approval to the Indian Embassy to spend up to 200 Million directly and has bypassed the political parties at the time of making the decision. We have been getting Indian assistance for small development projects. Now the project has been renamed as High Impact Community Development Projects after which the assistance amount and its work area have been further expanded," the Nepal PM said.

"Separate annotation has been attempted to establish claiming the Embassy has gained full right in making the expenditure, it is false. Rather this time we have made it clear that those expenses only can be made after getting demand and approval from the Province and Local Levels which would come through the concerned ministries," he added.

Earlier this year, Nepal and India signed an agreement during the visit of EAM S Jaishankar to Nepal allowing the Indian Embassy to invest up to Rs 200 million in projects in Nepal.

The two sides raised the limit for Indian assistance through High Impact Community Development Projects (HICDP), earlier known as small development projects, to Rs 200 million from Rs 50 million.

Finance Secretary Krishna Hari Pushkar and Indian Ambassador to Nepal Naveen Srivastava signed the agreement in the presence of Foreign Minister NP Saud and Indian Minister for External Affairs S Jaishankar on January 4, 2024. The Cabinet meeting on December 7, 2023, had decided to accept assistance through HICDP.

India had initially proposed to raise the limit to Rs 240 million but Nepal agreed to raise it to Rs 200 million after consultation among Prime Minister (PM) Pushpa Kamal Dahal, Foreign Minister Saud and Finance Minister Prakash Sharan Mahat.

Nepal had first started to accept such assistance of up to Rs 30 million when Surya Bahadur Thapa was the PM in 2003. The limit was then raised to Rs 50 million when Baburam Bhattarai was the PM eight years later. Since its inception in 2003, a total of 544 HICDPs have been undertaken by India in Nepal. Of them, 480 projects have been completed and the remaining 59 projects are still ongoing.

After Nepal adopted a federalism structure with the promulgation of the 2015 constitution, Nepal and India worked on how to implement the projects. Province-wise, 84 projects have been completed in Koshi, 81 projects in Madhes, 105 in Bagmati, 61 in Gandaki, 60 projects in Lumbini, 14 in Karnlai and 41 in Sudurpaschim. (ANI)