Due to inclusion of the new clauses, the Nepali private sector has called the revised document ´Trade Treaty 1996 Plus.´ [break]
Prime Minister Madhav Kumar Nepal had made efforts at the political level to create an environment for the signing of the trade treaty, which will play a pivotal role in luring investments and facilitation of trade between the two countries.
In a twist to developments, Nepal and India have also agreed to sign a revised version of the Control of Unauthorized Trade Treaty. This contentious treaty will most likely be signed at the ministerial level Saturday.
PM in Mumbai
On the fourth day of his India visit, PM Nepal has arrived in Mumbai, the financial capital of the country. He also visited Asia´s oldest share trading floor, the Mumbai Stock Exchange, where he signaled the ending of the day´s trading by ringing the bell.
Later he informed that India has pledged to extend financial support of around Rs 150 million to modernize Nepal´s stock exchange.
In Mumbai the PM also met with the president of the Mumbai Cricket Board. Sources said the cricket board has pledged support for Nepal.
Food exports to resume
As per a demand made by Nepal, India has agreed to open exports of Indian food products to Nepal. India had imposed a ban on exports of all essential food items to tame rising food prices. However, Nepal needs to assure India that food stuff exported to Nepal does not find its way to third countries.
India has also informed that it has allocated a budget for the construction of railway links from Jaynagar to Bardibas and from Jogbani to Biratnagar.
Hydropower
Renowned Indian business house, Tata, has expressed interest in investing in Nepal´s hydropower sector. This was stated by a senior official of Tata Energy at an interaction held by the Confederation of Indian Industries in Mumbai.
On the Pancheshwar Multipurpose Project, India and Nepal have agreed to initiate the necessary process through a technical committee. India has also agreed to build transmission lines to facilitate export of electricity to Nepal. To expedite that process, an Indian team will soon arrive in Nepal and conduct a feasibility study.
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