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NA makes significant strides to procure arms from China; approaches Army Welfare Fund


01 May 2023  

Time taken to read : 6 Minute


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KATHMANDU: The Nepali Army (NA) has completed the first phase of purchasing weapons from China, including the final procurement process.

Despite Prime Minister Pushpa Kamal Dahal Prachanda’s concern on the issue, the procurement process is currently underway, and the Nepali Army is set to begin the second phase after completing the payment process for the first phase.

Chief of the Army Staff (CoAS) Prabhuram Sharma is scheduled to visit China in three months’ time, sources have claimed.

Meanwhile, Chinese Ambassador to Nepal met with Nepal’s Minister of Defense, Purna Bahadur Khadka last week.

A senior army officer, speaking on the condition of anonymity, stated that the Chief of Army Staff favored a transparent procurement process, but the process was expedited due to months of pressure from Bhushan Rana and Santosh Ballav Paudel for their own special interests.

This is only the first phase of the procurement process, and it appears that the Nepali Army is pursuing a major Chinese arms acquisition, indicating their plans to procure more Chinese weapons.

It also seems that China may have gained the upper hand in not only economic matters but also military affairs, as they continue to make significant strides in the procurement process with the Nepali Army.

According to sources, a Major General of the NA, who is close to former Chief of Army Staff, Purna Chandra Thapa, purchased properties in Dubai and Thailand following the Fast Track contract.

After the cancellation of the Russian arms deal, sources claim that a self-interested group started a secret process of directly purchasing Chinese arms through the Welfare Fund of the Nepali Army.

Furthermore, the growing influence of China in the Nepali Army is a cause for concern, the source said.

The source claimed that a letter has also been sent to the Military Welfare Fund to arrange payment for the recently signed contract with Chinese company Norinko.

The contract includes the procurement of 26 Armored Personnel Carriers (APCs) at a cost of US$ 538,000 per unit, 94 tactical vehicles at US$ 250,000 per unit, and thousands of 12.7 mm bullets.

According to the source, a letter was sent to the Army Welfare Fund last week to arrange payment for the contract with the Chinese company for the procurement of Chinese weapons.

The Army Welfare Fund is reportedly exploring the possibility of arranging payment through Himalayan Bank or Rastra Bank and is preparing to make the payment for the weapons procurement this week.

Meanwhile, in order to ensure “geopolitical balance”, the Nepali Army has recently signed an agreement with Indian company Mahindra for the procurement of a small number of Armored Personnel Carriers (APCs), according to military sources.

The agreement includes the purchase of four APCs from India at a cost of US$398,000. The agreement was reportedly concluded last Thursday.

Bhushan Rana from Lalitpur and Brigadier General Santosh Ballabh Paudel of the Nepali Army are reported to have vested interests in the procurement process.

Rana, allegedly under the influence of top Nepali Congress leaders, played a significant role in the appointment of Lokendra Karki as a new agent, the source claimed.

It is also claimed that Rana has been warning individuals who speak about this deal to be targeted with asset laundering, among other things.

In the past two years, Rana has reportedly been actively involved in large contracts, transfers, promotions, and other matters.

According to sources, the procurement process for Chinese weapons was pushed forward during the tenure of Sher Bahadur Deuba as the Prime Minister and Defense Minister.

Bhushan Rana and Lokendra Karki reportedly played an active role in advancing the process, taking advantage of the political transition after the elections.

Sources suggest that the current procurement process for Chinese weapons is only the first phase of a larger agreement, and that certain self-interested groups are working to bring in Chinese weapons in a phased manner with significant results.

However, they were not able to complete the procurement after the elections due to a delay by the Army Chief.

During his time as Defense Minister, Prime Minister Deuba, had entrusted Deepak Bhatta of his home district of Dadeldhura, to facilitate the purchase of Russian Mi-17 helicopters, ignoring the American blockade. The procurement was eventually halted last year due to lack of dollars in Nepal.

After the cancellation of the Russian arms deal, sources claim that a self-interested group started a secret process of directly purchasing Chinese arms through the Welfare Fund of the Nepali Army.

Sources suggest that the current procurement process for Chinese weapons is only the first phase of a larger agreement, and that certain self-interested groups are working to bring in Chinese weapons in a phased manner with significant results.

With Purna Bahadur Khadka taking over the Ministry of Defense, some believe that Sher Bahadur Deuba has lost some influence.

Sources suggest that Deuba is trying to show Prime Minister Dahal that he is unaware of how to alleviate geopolitical pressure, while Dahal is claiming that the procurement process has reached its final stage and that he was not informed of Deuba’s input.

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