KATHMANDU: The government has set a target to complete the Siddhababa Tunnel within the next fiscal year while announcing a shift of the Dhauwadi Iron Company to a public-private partnership (PPP) model.

Presenting the federal budget for fiscal year 2026/27, Finance Minister Dr. Swarnim Wagle said priority infrastructure corridors, including key highway and regional road projects, will be fast-tracked to improve national connectivity and reduce travel risks.

The Siddhababa Tunnel is expected to bypass a landslide-prone section of the Siddhartha Highway, improving road safety and travel efficiency.

The budget also announced restructuring of the state-owned Dhauwadi Iron Company, which will be operated under a PPP model to promote commercial iron extraction and reduce reliance on imported steel products.