Construction of the Mahakali Corridor—a strategic road project that could potentially serve as a vital trade route with China—has has been severely affected due to budget shortfalls and bureaucratic red tape. Officials warn that if current funding trends continue, the long-envisioned corridor may take years to complete.
According to the state-run national news agency RSS, the 413-kilometre corridor, which stretches from Brahmadev in Kanchanpur to the Tinkar Pass in Darchula near Nepal’s border with China, is considered a potential alternative to the currently disrupted Rasuwagadhi and Tatopani trade routes. Experts believe it holds the promise of transforming Nepal’s Far-Western region into a key hub for trilateral trade with China and India.
However, in the current fiscal year 2025/26, the government has allocated only Rs 229.7 million for the project, while the Mahakali Corridor Road Project Office still faces outstanding liabilities of Rs 1.5 billion, RSS further reported.
Read: Mahakali Corridor: 241-km Track Opened in 15 Years
“With such limited funds, it is not possible to initiate new contracts,” Deepak Sunar, chief of the project office, told RSS. “If this level of funding continues, it will take many years to complete the corridor.”
Of the 334-kilometre road stretch between Kanchanpur’s Brahmadev and Tusarpani in Darchla, 54 kilometres of track is yet to be opened—including about 27 kilometres in Dadeldhura, 9 kilometres in Baitadi, and 18 kilometres in Darchula. Only around five kilometres have been blacktopped so far.
While the project has awarded contracts for paving several sections, payments to contractors have stalled due to the lack of adequate funds.
The corridor spans 11 kilometres in Kanchanpur, 58 km in Dadeldhura, 144 km in Baitadi, and 121 km in Darchula. The Nepali Army is currently working on opening the track along the 79-kilometre section from Tusarpani to the Tinkar Pass.
So far, 11 kilometres of track have been opened in Kanchanpur, 28 km in Dadeldhura, 114 km in Baitadi, and 77 km in Darchula, according to Sunar.
Initiated in fiscal year 2008/09, the project was envisioned to connect four districts of Nepal’s Sudurpaschim Province and extend to Pillar No 1 on the Nepal-China border. The corridor is expected to directly benefit some 800,000 residents and boost cross-border commerce given its proximity to both India and China, RSS added.
According to RSS, the initial cost estimate for the corridor was Rs 18.16 billion, and it was slated for completion by fiscal year 2023/24. But procedural delays, difficulties in acquiring tree-felling permits, and continued underfunding have resulted in time and cost overruns.
