India-Nepal Development Partnership Advances: 10th LOC Review Meeting

In a testament to the enduring collaboration between India and Nepal, the 10th India-Nepal Line of Credit (LOC) Review Meeting was successfully convened in Kathmandu on August 10, 2023. The meeting served as a significant milestone in the countries’ developmental partnership, bringing together high-level officials from both sides to discuss and review the progress of various projects funded through the LOC mechanism.

The Indian delegation, led by A. Ajay Kumar, Joint Secretary of Development Partnership Administration-I, Ministry of External Affairs, engaged in fruitful discussions with their Nepalese counterparts, headed by Shreekrishna Nepal, Joint Secretary of the Ministry of Finance, Government of Nepal. The meeting provided an opportunity for both nations to express their satisfaction with the robust cooperation fostered by the India-Nepal Developmental Partnership, particularly in the implementation of projects under the LOC framework.

The review encompassed a comprehensive assessment of ongoing projects across diverse sectors, including infrastructure development, road construction, hydropower, transmission lines, housing, and reconstruction. Notably, the Indian delegation conducted on-site visits to ongoing road projects on August 9 and 11, 2023, reaffirming their commitment to effective project management and oversight.

India’s impressive LOC portfolio, which exceeds USD 30 billion and spans over 60 partner countries, includes four significant LOCs in Nepal with a total value of USD 1.65 billion. These funds have been strategically directed towards priority infrastructure projects outlined by the Government of Nepal, contributing to the nation’s development.

Since the inception of the LOCs, remarkable progress has been achieved, with over 40 road projects covering a distance of 1105 km successfully completed. Additionally, six hydropower and transmission line projects have been finalized, alongside several housing and reconstruction initiatives. A pivotal aspect of this collaboration has been the enhancement of Nepal’s power transmission infrastructure. Landmark projects such as the Koshi Corridor (220 kV), Modi Lekhnath (132 kV), Solu Corridor (132 kV), and the transformative Dhalkebar-Bhittamod (400 kV) transmission line have significantly bolstered Nepal’s power capacity, allowing for power exports of up to 452 MW.

In a demonstration of their unwavering commitment to Nepal’s energy sector, India has committed funding for several critical projects, including the Bheri Corridor, Nijgadh-Inaruwa, and Gandak Nepalgunj Transmission lines, along with associated substations. Collectively valued at US$ 679.8 million, these initiatives underscore the shared dedication of India and Nepal to sustainable and progressive development.

The 10th LOC Review Meeting not only highlighted the impressive strides made in the India-Nepal Developmental Partnership but also reaffirmed the mutual respect and shared vision that underpin the relationship between these two neighboring nations. As both countries continue to work hand in hand, this partnership is poised to drive socio-economic growth, foster regional stability, and create a brighter future for the people of India and Nepal.