Kathmandu, July 6 -- The federal government has discontinued releasing resources for projects under the Local Infrastructure Development Partnership Programme starting from early last week, as the government has decided to invest the unused funds under the programme for Covid-19 response.

The Cabinet on June 16 had approved an amendment to the regulation governing the Local Infrastructure Development Partnership Programme, allowing transfer of its unused funds to Covid-19 accounts at the local level. The local governments were told to get the remaining funds in their Covid-19 accounts by June 29.

"Right after the deadline to take the funds expired on June 29, we have stopped releasing any resources that come for implementing any other p...