Nepalese President's Economic Advisor Resigns After Criticising Prachanda Government Over New Currency Notes Showing Indian Territory

Chiranjivi Nepal, the economic advisor to Nepal's President Ram Chandra Paudel, resigned after his remarks on the government’s decision to issue new hundred-rupee notes featuring a map that includes territories disputed with India.

The Nepalese President accepted his resignation on Sunday, according to a press release from the Office of the President.

Nepal stated that his comments were intended to highlight potential practical issues arising from the inclusion of the territories of Kalapani, Lipulekh, and Limpiyadhura on the new notes, particularly at a time when diplomatic discussions regarding these areas are ongoing.

“I, therefore, tendered my resignation taking the moral obligation of the attempt made by some online news portals which have tried to drag the president into controversy based on my statement,” he said, news agency PTI reported.

His resignation comes after Nepal government last week decided to introduce a new Rs 100 currency note featuring Indian territory, rekindling tensions that arose four years ago when Nepal included Uttarakhand's Kalapani, Lipulekh, and Limpiyadhura in its map.

The announcement came from Nepal government spokesperson and Minister of Communication Rekha Sharma after a cabinet meeting chaired by Prime Minister Pushpa Kamal Dahal 'Prachanda.'

The move was criticised by India's External Affairs Minister S Jaishankar, who stated that it wouldn't alter the ground reality or the ongoing boundary discussions between the two countries.

“Our position is very clear. With Nepal, we are having discussions about our boundary matters through an established platform. In the middle of that, they unilaterally took some measures on their side," Jaishankar said, Indian Express reported.

Criticising the Prachanda government's decision, Chiranjibi Nepal, a former Governor of Rastra Bank and economic advisor to the President, questioned the decision's timing and potential consequences, emphasising the importance of international recognition.

“The decision of the government has come at the most inappropriate time and without thinking of its larger implications. Nepal being in dispute with India over certain parts of territory is one thing, but printing in the currency a map that is different from what the international bodies, including two neighbours, have recognised is unwise," Chiranjibi Nepal had said.

CPN-UML chairman and former Prime Minister K P Sharma Oli had publicly criticised Chiranjivi Nepal for his remarks.

The rift between India and Nepal deepened in 2020 when India inaugurated a new road from Dharchula to Lipulekh on the Mansarovar Yatra route in Uttarakhand.

This angered the then prime minister K P Sharma Oli led government in Kathmandu, which came out with a new map of Nepal, adding to it an area of 370 sq km at the tri-junction of Nepal, India and China which India maintains is its territory.

A Constitution amendment Bill was passed by Nepal’s Parliament to legitimise the modification to the country’s map with the addition of India territories of Kalapani, Lipulekh and Limpiyadhura.

The passage of the Bill and the new map led to a temporary breakdown of communication between the two countries.

The 2020 move had support of Nepal's political parties. However, the recent decision by the Prachand government has faced internal skepticism and criticism, including that of Chiranjibi Nepal.

Also Read: New Currency Notes In Nepal To Show Map With Indian Territories