Nepal Cabinet Approves Major Infrastructure Projects and Fuel Relief Measures

Kathmandu. The Council of Ministers held a meeting on Tuesday and made several significant decisions. Minister of Federal Affairs and General Administration, Pratibha Rawal, announced that the cabinet has decided to accept a concessional loan of 85 million USD from the World Bank for the Greater Lumbini Area Development Project under the Ministry of Finance. 

 Furthermore, regarding infrastructure development, the government has granted approval for the acquisition of private land in Dhunibeshi Municipality, located on the western section of the Nagdhunga Tunnel, and in Uttargaya Rural Municipality, situated on the Betrawati-Dhunche-Syaphrubesi road section of the Pasang Lhamu Highway. 

The meeting also decided to allow the use of 46.39 hectares of forest land across Kathmandu, Lalitpur, and Makwanpur districts for the construction of the Kathmandu-Terai Madhesh Expressway, authorizing the felling of 18,898 trees. 

In terms of administrative and institutional reforms, Minister Rawal stated that the Water Resources and Energy Research Center in Pulchowk, Lalitpur, will be relocated to Godawari, and the Water and Energy Commission Secretariat will be moved into the vacated building. Additionally, the government has appointed Dr. Gunakar Bhatta from Doti as the Vice-Chairman of the National Planning Commission and Kiran Pandit as the Deputy Governor of Nepal Rastra Bank. 
The meeting also accepted the resignations of the Chairman and members of the Problematic Cooperative Management Committee. 

To address the escalating fuel crisis and economic burden, the cabinet has adopted special policy measures. Minister Rawal announced a 50 percent reduction in customs duty and infrastructure development tax on the import of petrol, diesel, and kerosene. Presenting data showing a loss of approximately 11.72 billion rupees to the government in the last 15 days alone, she clarified that policies to reduce fuel consumption include declaring Sunday a public holiday, potentially implementing an odd-even vehicle rationing system, and promoting the use of electric vehicles (EVs) and ethanol.