Nepal set to end special arrangement with India on executing small projects- here’s why

As the three-year period renewed in 2014 ran out on August 5, the Nepalese government appears reluctant to renew it, ostensibly because it has to be renegotiated 'since Nepal has entered federal system' now and the district administrations which used to play a role in the projects, would cease to exist.

Written by Yubaraj Ghimire | Published:August 10, 2017 4:28 pm
nepal, India-nepal agreement, India nepal relations, indo-nepal, indian embassy in nepal, india news Nepal Prime Minister Pushpa Kamal Dahal Prachanda with Prime minister Narendra Modi at the Hyderabad house in New Delhi. (Source: Express photo by Prem Nath Pandey/File)

In 2003, the Indian government secured a special treatment agreement with Nepal’s government which allowed the Indian Embassy in Kathmandu to independently decide ‘small projects’ and execute them without going through regular administrative processes. The arrangement has been renewed four times, each at the end of three years, and the embassy has spent around Rs. 10.85 billion under what is known as the Small Development Projects (SDP).

But as the three-year period renewed in 2014 ran out on August 5, the Nepalese government appears reluctant to renew it, ostensibly because it has to be renegotiated ‘since Nepal has entered federal system’ now and the district administrations which used to play a role in the projects, would cease to exist.

However, there may be other reasons for the change of heart. China has frequently demanded the same favour from Nepal, seeking the same autonomy for its embassy in Kathmandu to decide and execute development projects in at least 16 districts along the Tibet border.

In July, barely a week before he quit as PM, Maoist chief Pushpa Kamal Dahal instructed the Poverty Alleviation Fund, a statutory body to let China decide projects up to Rs 5 billion. A formal arrangement to implement this is, however, still to be made.

Secondly, some political parties and parliamentary committee members are critical of politicians ‘making a beeline’ for the Indian Embassy to have SDPs launched in their areas.

According to the official reports, the Indian Embassy took up 514 projects in all during the last 14 years. These included construction of roads, school and health centre buildings and bridges. Out of 514, only 225 have been completed, the rest are in various stages of construction.

Authorities in the Ministry of Finance and the local administrations fear that continuation of the projects in the existing pattern will undermine the role of the state agencies and ‘may even open the floodgates’ to demands for similar arrangements with other embassies.

“As far as we are concerned the project lapses but we believe that the issue may come up during the visit of Prime Minister Sher Bahadur Deuba to Delhi beginning August 23,’ said a senior official in the Foreign Ministry.

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  1. S
    Subedi balaram
    Aug 10, 2017 at 10:23 pm
    Dear nepali people why you removed Hinduism as the state religion even though 80 of nepali follow hinduism as their religion...you can take d eg Bhutan, Srilanka they have 65 buddhist followers den also they r keeping buddhism as their state religion..Now if nepal govt. Do not make Hinduism as their religion den in one christianity will rise and nepal will become permanently a christian nation..which prachanda, baburam n maoist wanted...so people of nepal plz protect ur religion otherwise christian will vanish everything in nepal...jai hindu rashtra nepal.....
    Reply
    1. S
      Sivakumar
      Aug 10, 2017 at 9:56 pm
      Dear Nepali sympathiers Pse do understand now what ever you are that's because of India and Indian people, don't try to back stab India. They are lakhs and lakhs of napalies are working in India and their family back home is living peacefully, you guys without passport come here and do even business, we Indian have soft corners for you nearly because you also follow Hinduism, your prosperity is ours, but don't forget and back stab us, India never colonialism you even morally but the Tracherous China will colonise you because they don't have any bound but India has because of Religious and cultural brotherhood
      Reply
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        Ak
        Aug 11, 2017 at 4:36 am
        Dear sshivakumar You are as dumb as other indians. We are not who we are because of india. Infact india have always try to keep us underdevelp and try to i terfear in our politial situations. Most voioelce in near indian border is caused be indians. Also dont forget millions of indians come to nepal looking for job without passport and visa we let you guys in our country free too.
        Reply
      2. S
        Sushil Rajdev
        Aug 10, 2017 at 8:29 pm
        Nepal has lost earlier confidence in india after trucker strike for few months on indian side affecting their essential supply and daily home needs .
        Reply
        1. B
          B D
          Aug 10, 2017 at 6:17 pm
          Very Very Very Good Decision By Nepal... India Should First Start Respecting Nepal.... Till Then, It's A Dream Now To Expect Goodwill From Nepal Nepali's..... Jai Nepal .....
          Reply
          1. B
            B D
            Aug 10, 2017 at 6:37 pm
            No Country Should Be Allowed To Distribute Money Directly To Local Levels... Its A Clear Case Of Weakening Nepal's Sovereignty..... Jai Nepal .....
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              A. M.
              Aug 10, 2017 at 7:17 pm
              That's like a self respecting and smart Nepali. Remember that you will not get anything from India except treachery and humiliation, just like they humiliated the Nepalese during earthquake relief and also when they interfered in your internal cons utional matters and imposed a blockage of many days upon the poor Nepalese. I am an Indian citizen and I am myself fed up of the present Indian govt. Don't expect any good from India, till sanghis are ruling India.
              Reply
            2. G
              Gopal Verma
              Aug 10, 2017 at 6:15 pm
              Feku Modi thinks visiting foreign countries and gifting them shawls is diplomacy. This is what happens when an ill read or illiterate becomes a PM.
              Reply
              1. S
                shankar
                Aug 10, 2017 at 7:13 pm
                Well said ... Only bhakts believe it to be diplomacy ...
                Reply
              2. R
                RJ
                Aug 10, 2017 at 5:10 pm
                If Nepal thinks it can be a friend of China, they have another thing coming for them. They will either be occupied like Tibet or colonized like Pakistan.
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                  A. M.
                  Aug 10, 2017 at 4:47 pm
                  Dear Nepalis, Good that you understood that this feku govt in India cannot be trusted. Make friendship with china and you will prosper. You will only get false promises and betrayal from the present sanghi Indian govt who humiliated you at the time of earthquake and also tried to meddle in your internal cons utional matters.- msg from a common indian.
                  Reply
                  1. R
                    Raj
                    Aug 10, 2017 at 4:58 pm
                    LoL! The wumaos are getting desperate..!
                    Reply
                    1. G
                      G
                      Aug 10, 2017 at 5:52 pm
                      You're totally right - I used to think these are just Congress supporters but now I realise these are actually from the Chinese 50 cent army to destabilise India. These guys are not against the Modi government but rather against India. They don't realise India was the biggest donor in the earthquake period and our operations started with 15 mins of the earthquake.
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                        A. M.
                        Aug 10, 2017 at 6:27 pm
                        Mr G you are very smart to recognise me. See I will talk to you in mandarin to prove you that you are correct. Tu 50 cent wali army etle Shu bjp IT cell wala ni paid online a bhakt no vaat kare che ?
                      2. T
                        TJ
                        Aug 10, 2017 at 5:25 pm
                        Height of desperation is reflecting in comments... very soon you will suffocate...
                        Reply
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