Government seeks funds from India to stave off crisis

Nepal's ad interim government inherited a serious financial crisis in the wake of the April revolts. To alleviate the country's plight, Premier Koirala is asking India for more than a billion dollars, a sum that far exceeds the already substantial contribution given annually by New Delhi to Nepal.

Kathmandu (AsiaNews) – Girja Prasad Koirala, octogenarian Nepalese premier, has travelled to India to seek economic support to tackle the serious crisis gripping the country. The government of the Himalayan kingdom is asking for 75 billion rupees, more than a billion dollars, for the next five years. This money, said the Nepalese premier, was essential to assist the population and to create new infrastructure fundamental for the country, like roads.

An official of the Finance Ministry, who asked to remain anonymous, told AsiaNews the request of the Nepalese premier will be brought to the attention of the government during Koirala's visit in India. But he said the total was far more than New Delhi's usual annual contribution to Kathmandu, that is, two billion rupees.

"I wonder how India, which is itself facing a financial crisis, would be able to provide such huge aid to Nepal," said Sushil Sashank, a political analyst of Indian origin. "Besides, Indian assistance to the country has been far higher than that of any other country. Yet many Nepalese politicians, mainly Communists, accuse India of imperialistic designs. Indian politicians take note of this. So I doubt India is going to oblige Koirala the way he expects."

Meanwhile, continued Sashank, the Maoists were putting pressure on the Nepalese premier to release 137 Maoists detained for various crimes in Indian prisons. "The Maoists must realize India is not like Nepal, where the government and parliament can take whimsical decisions. India is effectively governed by rules and laws which the Indian government and parliament can't change at their will or whim. Most Maoists jailed in India are accused of perpetrating heinous crimes on Indian soil. They were not arrested because of any request from Kathmandu. So securing their release is not as easy as the Maoists think."

Pramod Bihari Singh, chairperson of the India-based Indo-Nepal Friendship Association, said the Indian government should support its Nepalese counterpart to tackle the crisis. Speaking to AsiaNews, he added: "However it should be conditional help. And the condition should be the end of marijuana cultivation, produced on a large scale in Nepal under the patronage of the army, government, political parties and Maoists. If India does not pay attention to this menace, millions of Indians could be trapped by this drugs cobweb. Already over five million Indians are addicted to marijuana and their number is on the rise. So it is vital for India's future that marijuana cultivation in Nepal is totally stopped."

• Nepal
• india
• economy
• funds
• financing
• crisis
• economic
• drugs