Indian media claim diplomatic victory after Nepal decides to ‘drop border map from coin’

KATHMANDU, July 21: Indian media have claimed that India has secured a major diplomatic victory after Nepal decided not to include the disputed territories of Limpiyadhura, Kalapani and Lipulekh on a newly designed Rs 1 coin.

The government is preparing to issue a new Rs 1 coin featuring the image of a monastery instead of Nepal's revised political map. Citing the decision, Indian media outlets, including Aaj Tak, have reported that Nepal has "backed down" on the border dispute.

India claims Lipulekh and Kalapani as part of its territory. In May 2020, the government led by then Prime Minister KP Sharma Oli issued a new official political map incorporating Kalapani, Lipulekh and Limpiyadhura into Nepal's territory.

According to available information, the Cabinet led by Prime Minister Balendra Shah has approved Nepal Rastra Bank's proposal to issue newly designed Rs 1 and Rs 2 coins. The revised Rs 1 coin will no longer carry Nepal's updated political map. Instead, it will feature the image of Lo Ghyakar Monastery in Marang village of Mustang district, one of Nepal's oldest Buddhist monasteries.

However, according to Cabinet sources, the Rs 2 coin will continue to carry the existing map.

Nepal Rastra Bank spokesperson Guru Prasad Paudel said the central bank proposed the redesign mainly to reduce the size and weight of the coins. The weight of the Re 1 coin will be reduced from 4 grams to 3.2 grams, while the Rs 2 coin will be reduced from 5 grams to 3.8 grams. The new coins will be made of steel instead of alloy and will have a steel white color instead of yellow.

Nepal Communist Party (NCP) leader Bhim Rawal criticized the government's decision to remove the revised political map from the Re 1 coin, calling it a serious blow to Nepal's territorial integrity. He demanded that both the government and the ruling Rastriya Swatantra Party immediately clarify their position.

"If the government has decided to remove Nepal's map, including Limpiyadhura, Lipulekh and Kalapani, from the Re 1 coin and replace it with the image of Lo Ghyakar Monastery, it will be another serious anti national decision and an attack on Nepal's territorial integrity," Rawal said.

Limpiyadhura, Lipulekh and Kalapani dispute

The dispute over Limpiyadhura, Lipulekh and Kalapani is a long-standing border issue between Nepal and India.

Under the 1816 Treaty of Sugauli, the Nepal India border was defined along the Kali River. The disagreement centers on the river's true source.

Nepal maintains that the Kali River originates at Limpiyadhura, meaning the entire area covering Limpiyadhura, Kalapani and Lipulekh belongs to Nepal. India argues that the river begins near Kalapani and therefore considers the disputed territory part of India.

Kalapani is strategically important, while the Lipulekh Pass serves as a key route for the Kailash Mansarovar pilgrimage and trade between India and Tibet. Limpiyadhura is the westernmost point claimed by Nepal.

The dispute intensified in 2020 after India built a road to Lipulekh. In response, Nepal issued a revised political map showing the three areas within its territory and later gave the map constitutional recognition. India rejected Nepal's claim, while both countries have maintained that the dispute should be resolved through dialogue. Nepal has also consistently protested trade between India and China through the disputed area.