KATHMANDU, Jan 1: The government has decided to buy helicopters from China instead of MA-60 aircraft that were ordered during the king’s direct rule in 2005, according to Radio Kantipur. Earlier the government had ordered two MA-60 aircraft for use by Nepal Army. [break]
The then government had signed a purchase agreement worth US 16.9 million dollars and the government had paid US 5.5 million dollars in advance and the rest was to be payable within five years. But after the restoration of democracy the then government decided not to buy military aircraft and asked the Chinese aircraft manufacturer to return the money.
Govt expedites process to buy two army choppers

However, the Chinese firm refused to return the money so the government instead asked the firm to modify the aircraft for civilian purposes. The firm agreed. The Chinese firm last year said it readied the aircraft and demanded about Rs 10 million per month in compensation for the delay in purchase. Now as the outstanding dues have gone up the government has come up with the new proposal to buy helicopters.
However, the government has decided to buy the aircraft if the Chinese firm refuses to supply helicopters. “Whether we get helicopter or aircraft they will be kept under the government. The decision has been taken so that the money that has already been paid to China is not lost,” Minister for Commerce and Supplies Rajendra Mahato said.