India provides Rs 1.6 billion to Nepal

Kathmandu, Sep 12: India has provided a grant of Rs 1.6 billion to Nepal as budgetary support, the biggest amount after the restoration of democracy in the country.

Indian ambassador to Nepal Shiva Shankar Mukherjee handed over the cheque to Finance Minister Ram Sharan Mahat at a function here.

''The assistance will be used to meet the funding gap for different development programmes of the government,'' a Finance Ministry release stated.

The assistance is part of the economic package agreed during Prime Minister Girija Prasad Koirala's India visit in June this year, according to the Ministry.

''The recent support offered by the donors was the outcome of political changes in the country,'' Dr Mahat said.

He said the government reached a grant and loan assistance agreement of Rs 14.28 billion with different donors following the political change in the country. ''Of the total assistance, Rs 13.54 will come as grant and about Rs 740 million as loan,'' he added.

Dr Mahat expressed commitment that the budgetary support would be used for meeting the funding gap of productive projects.

UNI