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.


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