Wednesday, July 8th, 2026

Govt backs out of railway, releases land for Kakarbhitta–Inaruwa section



KATHMANDU: After years of imposing restrictions, the government has decided to release land previously frozen for the proposed railway project in the Kakarbhitta–Inaruwa section, signaling a quiet retreat from one of the key infrastructure promises made during KP Sharma Oli’s earlier tenure as Prime Minister.

The land freeze had affected properties in several municipalities across Jhapa, Morang, and Sunsari districts.

Locals were barred from selling or transferring their land after the Oli-led administration announced ambitious plans to complete the railway within five years. However, the project stalled entirely — not even basic steps like land measurement or compensation were completed.

Finance Minister Bishnu Paudel, while presenting the budget for fiscal year 2025/26 on Thursday, formally announced that the government would now unfreeze the affected land, effectively allowing residents to resume transactions. The move comes as a major relief to thousands of landowners who had been left in limbo.

Publish Date : 29 May 2025 17:09 PM

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