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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2527

India pledges Rs 32 billion aid to Nepal

[caption id="attachment_4401" align="alignright" width="460" caption="The Prime Minister of Nepal, Shri Madhav Kumar Nepal meeting the Union Finance Minister, Shri Pranab Mukherjee, in New Delhi on August 20, 2009."]The Prime Minister of Nepal, Shri Madhav Kumar Nepal meeting the Union Finance Minister, Shri Pranab Mukherjee, in New Delhi on August 20, 2009.[/caption]

Kosh R. Koirala - Reporting from Nepal

Kathmandu, 21 August, (Asiantribune.com): India has assured to provide all kinds of financial assistance including a massive Rs 32 billion aid package for the development of Nepal.

Indian Union Finance Minister for Finance Pranab Mukherjee made the announcement during his meeting with Nepal’s Prime Minister Madhav Kumar Nepal on Thursday morning.

Officials said the assistance will be used for the establishment of police booths, highways construction, railway link and setting up unified security posts in Biratnagar and Birginj, among others.

Prime Minister Nepal is currently on five-day official visit to India since Tuesday.

During the meeting, Minister Mukherjee assured PM Nepal that India will continue to provide financial assistance to Nepal and pledged the new aid package for Nepal to enhance its ailing economy.

India currently provides an annual grant aid of somewhere around Rs 16 billion to Nepal. The money is directly distributed to various schools, hospitals, road construction and other development projects under the discretion of the Indian Embassy in Kathmandu.

The prime minister also held talks with Indian Home Minister P. Chidambaram to curb cross border criminal activities. The two leaders agreed to increase cooperation between the security forces of the two countries to jointly tackle growing instances of cross border criminal activities along the Nepal-India border.

- Asian Tribune -

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