The Nepal government has scrapped contract signed with a Chinese company for the construction of 1200 Mega Watt Budhigandaki Hydroelectric project. A Cabinet meeting held in Kathmandu today decided to scrap the contract. <br/><br/>Deputy Prime Minister and Minister for Energy Kamal Thapa said in a tweet that cabinet has decided to scrap agreement signed with China's Gezhouba Group on the directions of parliamentary committees. <br/><br/>In June this year Nepal had signed a memorandum of understanding (MoU) with China Gezhouba Water & Power (Group) Co Ltd (CGGC) for construction of 1200 MW Budhigandaki Hydroelectric project on engineering, procurement, construction and finance (EPCF) model. <br/><br/>Later the MoU landed in a trouble as there were allegations that prevailing laws and processes were violated while awarding the contract.