It called for immediate action over the issue at a PAC meeting on Tuesday as the deal has now remained in a limbo for over four years. [break]
Earlier, the ministry had informed PAC that as per the cabinet decision of October 8, 2007, the government had decided to purchase an MA 60.
The ministry in the letter to PAC dated June 25, has, however, said that repeated meetings to settle the issue among the Defense Ministry, Ministry of Tourism and Civil Aviation, Nepal Army and Civil Aviation Authority of Nepal had failed to arrive at a conclusion.
As per the request of Nepal Army four years ago, then government had requested China to make available two MA 60 crafts at $15,940,000 each, which was later negotiated to $1,59,13,600. In this regard, an agreement was signed between the Chinese envoy and finance secretary on January 2006.
As per the agreement, the Nepal government paid 20 percent down payment amounting to $ 5,510,688 to China on January 19, 2006. But as Nepal failed to pay the timely installments, the crafts could not arrive.
Defense Ministry has claimed that the decision was stalled following the issuance of white paper which stated that no crafts will be purchased. However, as per a later cabinet decision of August 14, 2006, the government took a decision to buy only one craft but for civilian purpose.
The issue was also discussed during Defense Minister Bidya Devi Bhandari´s recent visit to China. Nepal Army has maintained that the craft should be purchased for military purpose.
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