Nepal pays 150,000 dollars to China as fine: Report

Kathmandu, May 29: The Nepal Government has been paying a fine of 150,000 dollars to China every month for the past seven months for not being able to pay about four million US dollars as the first instalment for buying two MA 60 aircraft, media reports said here today.

The King-led government had ordered two military planes for the Nepalese army. They were rejected by the new government which said that Nepal does not need any military planes.

The Koirala government told China to turn the planes into civilian aircraft, The Himalayan Times quoted an official as saying.

''China's condition is that the government should clear the first instalment of four million US dollars before it actually begins turning the military planes into civilian aircraft,'' he said.

The aircraft need to go through certain changes in 'head-cabin, emergency exit and safety door' to use them as civilian aircraft.

The planes, supposed to be delivered in August last year, remain grounded.

''We have not been able to pay the first instalment; so the government has been paying the penalty every month,'' the paper quoted Defence Secretary Bishnu Dutta Upreti as saying.

China has also refused a request to provide the two planes as grant in place of annual Chinese aid to Nepal.

UNI