India to give 250 million dollar credit line to Nepal

New Delhi: India today extended a USD 250 million credit line to Nepal for its developmental projects after the Prime Ministers of the two countries discussed a host of important bilateral and regional matters of mutual concern. Prime Minister Manmohan Singh held extensive talks with his Nepalese counterpart Baburam Bhattarai during which they discussed ways to boost trade, and security cooperation.

Apart from offering a credit line of USD 250 million, the two countries inked two pacts— Indian grant assistance for the Goitre Control Programme in Nepal and Bilateral Investment Promotion and Protection Agreement seeking to promote and protect investments from either country in the territory of the other country with the ultimate objective of increasing bilateral investment flow.

The credit line will be used to finance infrastructure projects such as highways, airports, bridges, irrigation, roads, railways and hydropower projects and carry a concessional rate of interest of 1.75% annually, with repayment period of 20 years, inclusive of 5 years moratorium.