Nepal has scrapped the contract awarded to a Chinese Group for construction of Budhi Gandaki Hydropower Project. <br/><br/>Lack of transparency and legal requirements is cited as the reason for this step.<br/><br/>A local newspaper 'The Himalayan Times' has reported that a meeting of the Council of Ministers yesterday decided to scrap the construction contract for the 1,200-megawatt project. The construction company was itself required to generate the funds for the project.<br/><br/>The Pushpa Kamal Dahal-led government had signed a MoU on the 4th of June for the project. <br/><br/>The deal landed in controversy as the MoU was allegedly signed breaching the general principle of competitive bidding in accordance with procurement rules.