Foreign Policy Watch: India-Nepal

India releases additional funds for Nepal’s Postal Highway


Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: Postal Highway Project

Mains level:  India-Nepal Bilateral Relationship



  1. The Government has released additional NPR 470 million for the Postal Highway being constructed in Southern Plains of Nepal.
  2. The amount has been released to maintain fund liquidity for the ongoing construction of 14 road packages under Postal Highway Project.

Postal Highway Project

  1. Postal Highway also called Hulaki Rajmarg runs across the Terai region of Nepal, from Bhadrapur in the east to Dodhara in the west, cutting across the entire width of the country.
  2. Since 1950, the Government of India has been supporting infrastructure development of Nepal.
  3. India has provided financial assistance for construction of various highways, roads, bridges, airports, etc as part of its multi-sectoral and multi-dimensional India-Nepal Economic Cooperation Programme.
  4. With this payment, a total of NPR 2.35 billion stands released to the Government of Nepal out of the total grant assistance of NPR 8.00 billion committed by the Government of India.

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