KATHMANDU, Aug 22: Prime Minister Madhav Kumar Nepal, who returned to the capital on Saurday after a five-day visit to India, has termed his visit "highly successful." [break]
"The visit has helped to strengthen bilateral relations between the two countries and the Trade Treaty signed with India and the Indian assistance of Rs 32.60 billion are proof of that," Nepal said while addressing a press conference at TIA upon arrival.
Nepal informed that during his meeting with Indian leaders, the two countries agreed to work towards "timely conclusion of all the understandings" reached between the two sides in the past. He added that he has requested Indian businessmen to look at investment opportunities in Nepal. In this context, the PM remarked that Indian investors are skeptical about the "security situation."
He said that he also visited the stock exchange in India´s commercial capital of Mumbai. He likewise gained knowledge about waste management systems. Responding to a query, the PM remarked that the issue of resumption of non-lethal military supplies to the Nepal Army came up during his talks with the Indian authorities. He added that understanding has been reached pertaining to the supply of all necessary equipment and weapons to the Nepal Police and the Armed Police Force. "We will receive all military support as per need," the PM said. India has agreed to the development of infrastructure and construction of buildings for the proposed National Police Academy at Panauti, Kavre at an estimated cost of Rs 3.2 billion.
In the hydropower sector, the PM said that the DPR process for the Pancheshwar Multi-purpose Project will "go ahead." The two prime ministers have directed the Joint Ministerial Commission on Water Resources and the Joint Committee on Water Resources to expedite finalization of the Terms of Reference for the Pancheshwar Development Authority and the DPR of the project.
Stating that the two countries also took up problems related to border security, the PM said the border strip maps "will soon be finalized." There would be a Bilateral Consultative Group on Security Issues and the home secretaries will meet within two months to address all the issues. The Joint Technical Committee is preparing and finalizing the maps, he said.
Asked about the controversy surrounding Foreign Minister Sujata Koirala´s opting out of the India visit at the last minute, PM Nepal said jokingly, "I am pleased to see that her health is improving." He did not comment on the issue of promoting Koirala to deputy PM.
Earlier, issuing a joint statement, the prime ministers of the two countries directed their foreign secretaries to "review the 1950 Treaty of Peace and Friendship." The foreign secretaries also signed an MoU regarding continuation of Indian grant assistance for the goitre control program in Nepal.
The Indian side will send an expert to advise on the development of national museums, the statement said. Moreover, the Indian side agreed to send a technical team to Nepal to study the Bagmati Civilization Project. The two sides also expressed "satisfaction" over the timely closure of the breach in the Koshi embankment last year.
Trade treaty and aid
India on Saturday unveiled a financial assistance commitment of about Rs 32 billion and also initialed the revised Trade Treaty and Agreement to Control Unauthorized Trade. The two sides, however, could not formalize the treaty as the Indian commerce minister had left for South Africa before they resolved a contentious provision wherein India denied Nepal re-export of third country goods through international agents while enjoying the same facility vis a vis Nepal.
- Two sides initial Trade, Unauthorized Trade Treaty
- India okays Visakhapatnam port for third country trade
- Rs 12.88b assistance for constructing hulaki roads
- Rs 11 billion for constructing rail links to Jogbani, Bardibas
“The wait will not last long though. We will hold a formal signing ceremony as soon as India completes its ratification process,” Commerce Secretary Purushottam Ojha told myrepublica.com.
India also agreed to allow Nepal to utilize its port in Vishakhapatnam for the movement of transit traffic to and from Nepal to facilitate the country´s foreign trade.
Nepal had requested the transit facility at Vishakhapatnam port, preferring that over the port in Mumbai, as it is 600 kilometers closer and highly efficient, thereby enabling traders to cut transit-transportation costs.
India is also to consider positively Nepal´s request for an additional sea port on its western coast for trade purposes, states a joint press release.
India promised to continue assistance to Nepal in its economic development and reconstruction endeavors and announced that its support would mainly be in areas including infrastructure, human resource development, health and education.
Under the assistance, India pledged to construct two cross-border rail links -- Jogbani-Biratnagar (18 kms) and gauge conversion for the Jayanagar-Bijalpura track (51 kms) and extension of the same to Bardibas (17 kms) -- with financial assistance of about Rs 11 billion.
It also promised to construct 660 km of feeder and lateral roads in the Tarai (hulaki roads) at an estimated cost of Rs 12.88 billion. The two sides agreed to expeditiously implement the Tanakpur-Mahendranagar Link Road as per bilateral discussions.
For effective and integrated border management, India agreed to develop border infrastructure and commence soon with the construction of two integrated check posts at Birgunj-Raxaul and Biratnagar-Jogbani with financial assistance of Rs 3.2 billion.
The two sides further agreed to conclude and sign a Bilateral Investment Promotion and Protection Agreement and a new Agreement on Avoidance of Double Taxation at an early date.
India promised to encourage its business and industrial community to increase investments in Nepal.
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