Indian ambassador to Nepal Shiva Shankar Mukherjee has said that India would soon release Rs 1.6 billion budgetary support as grant assistance.
Speaking at a gathering of the industrialists, businessmen and intellectuals organized by the Federation of Nepalese Chambers of Commerce (FNCCI) in the capital on Thursday, Mukherjee said this was the first budgetary support that India has provided to any country.
India had pledged Rs 15 billion financial assistance in June during the India visit of Prime Minister Girija Prasad Koirala.
Mukherjee reiterated that India will always extend its hand of support to Nepal when it prepares to embark on the path of economic rehabilitation, recovery and long-term growth. “Even in difficult times, India remains committed to Nepal’s economic development,” he added.
He also informed that a team of Indian Oil Corporation (IOC) officials will visit Nepal this week with a view to reschedule the outstanding dues the Nepal Oil Corporation (NOC) owes to IOC. NOC owes Rs 6 billion to IOC.
FNCCI president Chandi Raj Dhakal said that removal of four percent additional duty by India on Nepali goods would provide a breathing space for Nepali exports to India at a time when there is a trade gap of about five billion rupees monthly. Dhakal further asked the Indian government to remove the four percent additional duty on items like readymade garments, stone aggregates, beer, fabric, polyester items and aluminum products.
In the meantime, India has welcomed the agreement reached between the government and the Maoists to send common letter to the UN for management of arms.