Kathmandu. KATHMANDU: The Nepal Army (NA) has decided to mobilize the amount from the Army Welfare Fund to contribute to the national development. Addressing the fourth quarterly and annual progress review and ministry-level development problems resolution committee meeting held at the Ministry of Defence today, Chief of Army Staff Ashok Raj Sigdel said the fund amount would be invested in hydropower and solar power in the first phase.

“We are looking for alternatives to spend our welfare fund to contribute to national development. Our aim is to develop the nation and also to properly utilize the money in the welfare fund. “We are making efforts for that,” said Chief of Army Staff Sigdel. In the first phase, we are thinking to take forward the production of electricity through hydropower and solar energy on a trial basis. If this is successful, we will invest the fund in development works. ’

According to Chief of Army Staff Sigdel, the total assets of CF currently stands at around Rs 97 billion. Of this, around Rs 91 billion in cash and around Rs 6 billion in investment is held in various banks. The fund can spend up to 90 percent of its income. He, however, said that due to the reduction in the interest rate of the bank, there is a challenge in managing the expenses of the welfare program.

Currently, around 1 million beneficiaries are benefiting from the fund towards health services and about 11,000 students towards education. The major beneficiaries of health care are the families of the army personnel and the ex-servicemen. Similarly, students up to grade 12, MBBS, engineering and higher and technical education are also benefited. Chief of Army Staff Sigdel has made it clear that the expenditure from the welfare fund is mainly focused on the welfare of the army and ex-servicemen.

Chief of Army Staff Sigdel expressed his confidence that the construction of Kathmandu÷TaraiMadhes fast track would see a significant progress in the coming year as several efforts were being made to resolve the problems surfaced in the construction of KathmanduMadhes Fast Track. He pledged to give an opportunity to the contractors delaying the works to improve the project by giving them a certain time and terminate the contract agreement if there was no progress within that period.

He said that it is necessary to approve the third amendment of the detailed project report as soon as possible to complete the project within the stipulated time and to proceed with the construction of the remaining packages. According to Chief of Army Staff Sigdel, the delay in land acquisition and distribution of compensation has affected the overall performance of the project.

According to the Ministry, the delay in land acquisition, cutting down trees, distribution of compensation, delay in design and equipment management by contractors and delay in the construction of Khokana section have hampered the progress of the project. Chief of Army Staff Sigdel has said that more progress could be achieved if adequate budget is allocated in the coming days in view of the capital expenditure capacity of the NA.

He also urged the government to make adequate budget for roads and development projects of strategic importance, saying the Army’s human resources and equipment could not be utilized as per its capacity due to low budget. In the last fiscal year, physical progress was 63.70 per cent and financial progress was 71.82 per cent against the target. The project has achieved 48.72 per cent physical progress and 50.62 per cent financial progress so far.

According to the Ministry, seven development projects under the Ministry achieved cent per cent progress in the last fiscal year. Khandbari-Kimathanka, Karnali corridor, Benighat-Arughat-Larkebhanjyang, Darchula-Tinkar, bunker-to-barrack, National Defence University and National Chure Conservation Programme have achieved cent per cent progress as per the annual target.

In the last fiscal year, a total of Rs 66.88 billion was allocated for the Ministry of Defence and its subordinate bodies towards recurrent and capital expenditure, out of which Rs 63.54 billion was spent. About 95 percent of the financial progress has been made. According to the ministry, 74.6 per cent of capital expenditure and 97 per cent of recurrent expenditure has progressed.

As many as 1,127 people have been provided employment in various development construction projects and 976,286 people have been provided health services from hospitals under the NA. The total outstanding dues till the fiscal year 2082÷83 amounted to Rs 10.70 billion, out of which 54 percent has been settled. Currently, Rs 4.94 billion is outstanding arrears, according to the ministry.