The amount that India has spent on different projects in Nepal via its Line of Credit (LOC) has surpassed $1.65 billion. On Friday, during the 10th India-Nepal LOC Review Meeting in Kathmandu, the figure was made public. A statement from the Indian Embassy in Kathmandu said that the government of India has more than $30 billion in LOC portfolio, which is dispersed among more than 60 partner nations.
Four LOCs totalling $1.65 billion are included in Nepal: $100 million, $250 million, $550 million, and 750 million. The statement stated that the projects funded by the LOCs are committed to the development of infrastructure, which is a top priority for the Nepali government. It went on to say that to date, the LOCs have funded over 40 road projects (1,105 km completed), six projects involving hydropower and transmission lines, and numerous others involving housing and reconstruction.
As far as trade goes, India is Nepal’s biggest development partner. Large portions of the Indian LOC are allocated to transnational power transmission networks. Major line of credit projects including the Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV), and the Dhalkebar-Bhittamod (400 kV) projects have improved Nepal’s power transmission infrastructure. Up to 452 MW of electricity export are now made possible via the 400 kV Dhalkebar-Bhittamod line. The statement further said that the Indian government has decided to pay for the projected $679.8 million worth of Bheri Corridor, Nijgadh-Inaruwa, Gandak Nepalgunj Transmission lines, and related substations under Indian LOC.