India’s Concerns About Chinese Participation Relate to Power Purchases, Finance Minister Says

Dragon Media News Desk

Finance Minister Swarnim Wagle has said India has not asked Nepal to exclude Chinese companies from every sector. India’s concern relates to hydropower projects from which it would purchase electricity, he said in an interview with the Indian newspaper The Hindu.

According to an account of the interview published by NepalKhabar, Wagle noted that both Chinese and Indian companies have participated in Nepal’s infrastructure contracts. He said concerns expressed in parts of the Indian media about Nepal’s engagement with China sometimes exceed the reality. India’s position on electricity purchases, he said, should not be interpreted as a blanket objection to Chinese companies working in Nepal.

Wagle also estimated that rebuilding after the recent floods could require approximately US$4.7 billion to US$5 billion over the next three to five years. He said grants would be suitable for roads, bridges and public housing, while concessional loans could support publicly funded hydropower projects, transmission lines and substations. His estimate of the possible death toll was not a final official count.

The finance minister said he had raised the need to update the Nepal–India trade treaty with Indian officials. He also said bilateral discussions on air routes serving Bhairahawa and Pokhara airports were set to resume. Wagle expected Prime Minister Balendra Shah’s first formal bilateral visit abroad to be to India before the end of 2026. No date for the visit has been announced.