Narendra Modi has injected an investment of over $3 billion Nepal, already since he has taken charge of his duties as Prime Minister. This can literally change the entire economic scenario of a tiny Himalayan nation.
Two agreements in the energy sector and one on country’s line of credit and power trade agreement, Which is aimed at utilising Nepal’s hydropower resources.
Especially a decade-long armed conflict has done enormous damage to Nepal’s $ 63000 Bn economy. Nepal badly needs investments in infrastructure development, illiteracy, fighting poverty alleviation and food security.
The latest Indian initiative are, a) the signing of 900 MW Upper Karnali hydropower project in west Nepal between Investment Board Nepal and country’s GMR-ITD Consortium in September, b) soft loans of $1 billion for various Nepali infrastructure projects, 3) the development agreement of Arun III between the Investment Board Nepal and Satluj Jal Vidyut Nigam of India parallel to the 18th SAARC summit in Katmandu last week.
Apart from being the biggest investments in recent past coming from one country, (Upper Karnali and Arun III) each 900 MW and cost over $2.4 billion; it has also rekindled hopes about an ambitious Pancheshwar Multipurpose Project, (initially signed 17 years ago between Nepal and India, is all set to take off). The 6,720-MW project will cost over $6 billion.
Nepali economy is definitely on its return to revival.