May 14, 2016- The Indian Embassy in Kathmandu on Friday said that its government has not sanctioned any kind of aid cut to Nepal, responding to some media reports.

“The actual fund flow to Nepal from Ministry of External Affair’s Aid-to-Nepal budget in 2014-15 was IRs 300 crores, or over USD 50 million. While a good part of this aid is routed through the Nepalese Finance Ministry, a lot of such aid is given directly to the beneficiary. Such assistance includes granting of scholarships, creating medical infrastructure, etc,” the embassy said.

According to the embassy, India’s aid to Nepal in 2014-15 and in other years normally includes nearly 3,000 scholarships to Nepali students annually at a cost of IRs 50 crores; bilaterally committed free electricity supply and trainings for over 400 Nepalis persons from security, economic and other organisations accounting for IRs 50 crores; about 20 Small Development Projects, gifting of buses/ambulances, over 1,000 shallow tube wells and supply of iodised salt for IRs 50 crores; and construction of river training embankments for IRs 40 crores. Tarai Roads (of which 90 kms have been built) and Rail links, depending upon project progress, account for the rest, the embassy said.

The statement also mentioned about the four Lines of Credit totalling USD 1.65 billion available for utilisation, of which only USD 150 million has been disbursed since 2010.

Such financial support translates into on-ground socio-economic transformations in the form of spread of educational facilities, building health infrastructure, providing livelihood support and enhanced transport linkages leading to an overall improvement in the standard of living, the embassy said.

“Being fully committed to Nepal’s socio-economic development, India has continuously endeavoured to partake in the development process in Nepal. Any misrepresentation of figures undermines the quantum, scope and extant of the nature of socio-economic engagement between the two nations.”