China's Hydroelectricity project rejected by Nepal

Kathmandu, May 9: The Nepal government has said "no" to China to build the Budhi Gandaki hydroelectricity project that was awarded to a Chinese firm by the previous Pushpa Kamal Dahal 'Prachanda'-led dispensation in 2016.

The previous government had also asked China to list the project under its Belt and Road Initiative, of which Nepal is a part.

The decision by the current government on Tuesday came as relief to New Delhi as it fears that investment in Beijing would surpass in Nepal and would lessen India's clout in Kathmandu.

The Prachanda-led government, without any tendering, had decided to award the contract to China Gezhouba Group Company to build the scheme under the engineering-procurement-construction-and-financing (EPCF) model which led to a huge controversy in Nepal.