NEW DELHI : Notwithstanding the ties with Nepal fast deteriorating, India’s aid to the Himalayan nation is on constant increase, crossing the figure of Rs 400 crore annually.
Over and above, what is also not being counted is payment of pensions to ex-Gorkha soldiers which is about Rs.1800 crore per year or USD 300 million.
Last year saw a sharp surge in aide to the neighbouring country, when a devastating earthquake battered the large parts of Nepal. As the first responder, India launched Operation Maitri to help Nepalese cope the natural calamity, which at the end cost Rs.400 crore or approximately USD 70 million to New Delhi.
As Kathmandu stunned New Delhi by abruptly cancelling its President Bidya Devi Bhandari’s visit to India at the eleventh hour and asked its Ambassador to pack up and come back, diplomatic community here started calculating what India had been doing to keep the Himalayan nation in good humour.
After reports started floating from Kathmandu that India was cutting its aide to Nepal, New Delhi responded with facts and figures.
“Actual funds released to assist Nepal from MEA’s Aid to Nepal Budget are in the range of Rs.300 crore to Rs.400 crore annually or over USD 50 to 70 million,” said MEA spokesperson Vikas Swarup.
Rubbishing the reports that India’s aide to Nepal is pegged at 27 million dollars, he said the discrepancy could be because a good part of aid to Nepal is not necessarily routed through the Nepalese Treasury.
“Major payments include about 3,000 scholarships to Nepali students annually and training for over 700 Nepalese persons from security, economic and other organizations, accounting for about Rs.75 crore.
In addition, we have approximately 20 small development projects, we have gifted over 600 buses and ambulances, more than 1,000 shallow tube wells and iodized salt. All this totals another Rs.50 crore,” Mr Swarup said.
Besides, India is directly involved in the construction of river training embankments for Rs.40 crore and payments for ongoing projects such as integrated check posts, terai roads and rail links depending upon the project progress.
Four lines of credit totaling 1.65 billion dollar were available for utilization of which only 150 million dollar have been disbursed since 2010 Going by the calculation, India’s aide to Nepal stood 50 to 60 million dollar at the very minimum.
“India is fully committed to Nepal’s socio-economic development. There is no aid cut in the case of Nepal,” the MEA spokesperson said. It is noteworthy that India’s initial allocations for foreign aid for Nepal and other neighbouring countries are based on actual expenditure levels in the preceding years and taken into account absorption capacity of the friendly neighbourhood.
If there is sufficient expenditure and more is required, funds are sought by MEA at the Revised Estimate stage in the financial year. (AGENCIES)
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