Although the Chinese side has finalized the design, the Ring Road Second Section Expansion Project has not been able to move forward due to the Nepalese government's failure to take a decision on tax exemption.

If the work could not pick up speed due to the Chinese side's delay in the initial days, now the Nepal government is delaying due to its failure to make policy decisions on time  He said that initially, the Ministry of Finance agreed to make a decision from the Council of Ministers and later, after the issue of how to provide tax exemption was raised, the Ministry was sent again. ‘Now, the decision to grant tax exemption will be made,’ he said, ‘Accordingly, the Chinese construction company will not have to pay any tax during the construction process from customs to the equipment used in the construction.’

Arjun Prasad Aryal, Deputy Director General of the Roads Department, said that further work will proceed after the decision has been made. ‘After the decision is made, many things will be untied,’ he said, ‘The design is in preparation, even if the tax exemption is decided, the Chinese side will submit the design, the design will be presented to the department and if anything needs to be corrected, we will ask them to correct it and move the process forward.’ He said that the process of selecting a construction contractor will be completed after the design is finalized.

‘The Chinese side had asked to finalize it in December, but it was not possible,’ he said, ‘There is currently a delay on our part, now the work will progress a lot as soon as the decision is made.’ Joint Secretary and Spokesperson of the Ministry of Finance, Tanka Prasad Pandey, said that the file has been received from the Ministry of Finance and the decision is in the process of being made.

The Syafrubesi-Rasuwagadhi road will be upgraded and the second section of the ring road will be expanded with the grant from the Chinese government. The Department of Roads stated that the grant amount will not be used for tax purposes as per the foreign aid policy. The Chinese side has demanded tax exemption on construction materials used in the project and goods coming from China. The Ministry of Finance stated that the Koteshwor-Kalanki section was also built with the same grant from China.

The Syafrubesi-Rasuwagadhi road is also being built with the grant and a decision on tax exemption has been made on it. A Chinese technical team arrived in Nepal on April 6 to survey the second section of the ring road. The team spent two and a half months conducting the survey for the design. The department has stated that although the survey work was done for a distance of 8.2 kilometers, the distance will not reach the Vasundhara culvert. The road expansion work will be done only up to near Vasundhara Chowk. The remaining section will be done by the Nepal government itself.