The National Planning Commission (NPC) has invited proposals for projects and programs under federal fiscal equalization and special grants for the fiscal year 2025/26. Provincial and local governments must submit detailed proposals by February 27.
Due to delays caused by the National Development Problem Solving Committee’s directive, the call for proposals was issued only after revised procedures were implemented. NPC Assistant Spokesperson Dibakar Luitel stated that the grant-sharing model has been adjusted from the previous 50-50 arrangement to a flexible 20%–80% structure.
According to the Special Grants Procedure, 2081, rural municipalities and municipalities must submit projects costing between Rs 2.5 million and Rs 30 million. Sub-metropolises and metropolises should propose projects ranging from Rs 2.5 million to Rs 50 million, while provincial projects must fall between Rs 50 million and Rs 100 million. Infrastructure projects must be completed within three years, whereas other programs should be completed within one year.
Under the Supplementary Grants Procedure, 2081, rural municipalities and municipalities can request funding for projects costing between Rs 10 million and Rs 70 million. Sub-metropolises and metropolises must submit proposals for projects costing between Rs 30 million and Rs 150 million, while provincial projects should range from Rs 100 million to Rs 300 million.
Proposals must be submitted online along with necessary documents, including a detailed cost estimate, feasibility study, drawings, designs, and an environmental study report. Only submissions approved by the relevant local executive and the provincial council of ministers, based on recommendations from the provincial planning commission, will be considered for grants.
