Nepal’s government has backed away from its decision to remove the “Greater Nepal” map — at the heart of a long-running border dispute with India — from a new one-rupee coin, and will keep it after all. Analysts believe the decision to retain the Greater Nepal map, under pressure from the opposition and public opinion, is effectively a setback for New Delhi’s diplomacy.
Nepal’s central bank, Nepal Rastra Bank (NRB), said on Saturday that a new one-rupee coin would be released. But although the coin’s size and metal composition will change, it will carry the same political map of Greater Nepal as before, showing the Indian-claimed regions of Limpiyadhura, Lipulekh and Kalapani as part of Nepal.
NRB spokesman Guru Prasad Paudel said that although the new design had not yet been formally received, the bank was certain the previous map would remain. He said the new coin would be smaller and lighter than the earlier one.
Why the dispute?
At the heart of the India-Nepal border dispute is an area of about 370 square kilometres near the India-Nepal-China tri-junction, close to Pithoragarh district in India’s Uttarakhand. The dispute between the two countries concerns the three regions of Limpiyadhura, Lipulekh and Kalapani.
The root of the dispute lies in differing interpretations of the 1816 Sugauli Treaty. Nepal argues that because the Mahakali (Kali) river originates at Limpiyadhura, the three areas fall within its territory. India, on the other hand, claims the river originates from a spring near Kalapani, so all three areas are part of its Uttarakhand state.
Fresh tension in 2020
The dispute flared up again in May 2020 when India inaugurated a strategic road from Dharchula to the Lipulekh pass. Nepal alleged that the road — important for the Kailash-Mansarovar pilgrimage — had been built through territory it claims.
The then government of Prime Minister KP Sharma Oli then published a revised political map showing Kalapani, Lipulekh and Limpiyadhura as part of Nepal. That map later gained constitutional recognition and appeared in official documents and in circulating currency. India, however, has opposed the map from the outset.
The Balendra government’s position
After the political change of 2025, the rapper-turned-politician Balendra Shah came to power. Before becoming prime minister, he was known for his nationalist stance as mayor of Kathmandu. But after becoming head of government, he tried to build a pragmatic relationship with India, prioritising the economy, investment, energy cooperation and border connectivity.
Indian Prime Minister Narendra Modi also sent a positive signal by congratulating Balendra after he took office. At the same time, while maintaining ties with China, Nepal is following a policy of prioritising grant-based assistance over high-interest loans under the Belt and Road Initiative (BRI).
Fresh friction over Lipulekh
Soon after coming to power, the Balendra government called on India and China not to organise the Kailash-Mansarovar pilgrimage through the Lipulekh pass, saying the pass was part of Nepal’s territory. But India said the pilgrimage had been conducted using the route since 1954. New Delhi also reiterated its position that the border problem should be resolved through talks. Recently, when Nepal expressed interest in discussing the Lipulekh issue with China and Britain, India made clear that third-party intervention in a bilateral matter was unacceptable.
The change of decision
Then, on 20 July, the Balendra government approved a decision to remove the disputed map and add to the new coin an image of the historic “Lo Gyakar monastery” in Marang village of Mustang district. Many saw this as a diplomatic step to improve India-Nepal relations, though the government explained it as part of routine currency reform.
But that decision faced sharp criticism within the country. After pressure from the opposition and public opinion, the government finally changed its position. As a result, the new one-rupee coin will keep the “Greater Nepal” map as before.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report