Infrastructure Projects Current Affairs

Postal Highway Project: India grants Rs 470 million to Nepal

India has released additional Rs. 470 million (Nepali) for Phase I of Postal Highway Project being constructed in Southern Plains of Nepal. The amount released will help to maintain fund liquidity for ongoing construction of 14 road packages under Postal Highway Project.

Key Facts

India is providing financial assistance to Nepal since 1950 for infrastructure development as part of its multi-sectoral India-Nepal Economic Co-operation Programme. With release of recent additional funds, India so far has released Rs 2.35 billion to Nepal out of total grant assistance of Rs. 8.00 billion committed to implement 14 packages under Packages 2-6 of Phase I of Postal Highway Project. The Package 1 of the Project comprising two road sections Dhangadhi-Bhajaniya-Satti road and Lamki-Tikapur-Khakraula have already been completed with help of India’s grant assistance worth Rs 1.02 billion. The two roads were opened for service in January 2017.

Postal Highway

It is also called Hulaki Rajmarg which runs across Terai region of Nepal, from Bhadrapur in east to Dodhara in west, cutting across entire width of the country. It is oldest highway in Nepal constructed by Juddha Shumsher Jung Bahadur Rana and Padma Shumsher Jung Bahadur Rana to aid transportation and facilitate postal services throughout the Himalayan nation.

Month: Categories: India Current Affairs 2018

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EXIM Bank extends $4.5 billion loan to Bangladesh for social, infrastructure projects

The Export-Import Bank of India (Exim Bank) will provide loans worth about US $4.5 billion (Rs 29,200 crore) to Bangladesh for financing of various social and infrastructure projects. In this regard, Exim Bank has entered into agreement with Bangladesh Government in October 2017 to extend this line of credit (LoC) facility on behalf of Government of India (GoI).

Key Facts

Bangladesh will also use this financing facility to import consultancy services from India. Under the arrangement, financing export of eligible goods and services from India will be allowed which are eligible for export under Foreign Trade Policy of GoI and whose purchase may be agreed to be financed by Exim Bank under this agreement. The goods include plant, services (including consultancy services) and machinery and equipment.

Export-Import Bank of India (Exim Bank)

Exim Bank is wholly owned GoI entity for financing, facilitating and promoting foreign trade of India. It was setup in 1982 and is headquartered in Mumbai, Maharashtra. It extends LoC to overseas financial institutions, regional development banks, sovereign governments and other entities abroad. It enables buyers in those countries to import developmental and infrastructure, equipment’s, goods and services from India on deferred credit terms. It also facilitates investment by Indian companies abroad for setting up subsidiaries, joint ventures or overseas acquisitions.

Month: Categories: India Current Affairs 2018

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