PM Narendra Modi announces USD 1 bn concessional line of credit to Nepal

Kathmandu, Aug 3: Prime Minister Narendra Modi on Sunday announced NRs 10,000 crore as concessional line of credit to Nepal and proposed a HIT formula for the development of the land-locked country endowed with rich hydropower potential.

Modi, while addressing Nepal Constituent Assembly, said for Nepal, "India has decided to provide Nepal with NRs 10,000 crore (USD 1 billion) as concessional line of credit for various development purposes."

"This amount is separate from the previous assistance that India has already provided to Nepal," Modi, the first Indian Prime Minister to visit the country in 17 years, said.

Earlier, India had provided USD 250 million line of credit to Nepal through the Exim Bank of India. The new grant will be utilised for infrastructure development and energy projects as per Nepal's priority, according to Nepalese Foreign Ministry.

Proposing a model development formula for Nepal, Modi said, "I want to HIT Nepal", drawing wide applause from the lawmakers. Elaborating his strategy, Modi said HIT in his lexicon implies - H:Highways, I:I-ways and T:Transways. He said these three combined together would pave the way for rapid development of the country and India wants to "give this gift at the earliest".

This is the second time a foreign leader was addressing the Nepalese Constituent Assembly. Earlier in 1990, the then German Chancellor Helmut Kohl had delivered a keynote speech to the Constituent Assembly.

PTI