Indian Prime Minister Narendra Modi seeks to counter China’s influence during visit to Nepal, inaugurating new hydropower plant
China has outspent India in Nepal in recent years, as the impoverished Himalayan nation sandwiched between the two Asian giants has titled relations towards its northern neighbour
Indian Prime Minister Narendra Modi inaugurated the construction of a mega hydropower plant during a visit to Nepal on Friday, part of his government’s move to counter Chinese influence in its backyard.
Modi and his Nepali counterpart K.P. Sharma Oli laid the foundation stone of the US$1.4 billion India-backed Arun Three hydropower plant, a long-mooted project that could be a game-changer for energy-starved Nepal.
“It is one of the biggest projects in Nepal. Along with employment opportunities, this project will create economic and commercial opportunities in Nepal,” Modi said in Kathmandu following the inauguration.
The plant is the first of five mega hydropower projects, two of which are backed by Chinese companies, to begin construction, which marks a diplomatic win for India.
China has outspent India in Nepal in recent years, as the impoverished Himalayan nation sandwiched between the two Asian giants has titled relations towards its northern neighbour.
Along with employment opportunities, this project will create economic and commercial opportunities in Nepal
In 2017, Chinese firms pledged more than US$8.3 billion in investment, dwarfing Indian commitments of US$317 million. In May last year, Nepal signed up to Beijing’s ambitious Belt and Road Initiative infrastructure initiative.
