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Nepal clears misunderstanding, inks 9 pacts

Vineeta Pandey

In the backdrop of strained ties between India and Nepal for the last few months, Nepal Prime Minister KP Sharma Oli on Saturday met Prime Minister Narendra Modi to give a fresh boost to bilateral relations and clear “misunderstandings” between the two countries. “Misunderstandings that persisted between the two countries in the last few months no longer exist”, Oli said after the meeting with Modi during which nine pacts were signed.

Welcoming Oli with a warm handshake, Modi underscored that peace, stability and prosperity in Nepal was a shared goal and India would always remain its well-wisher. He added that India would extend all possible help to ensure all-round development of the country.

Nepal’s new Constitution had left several groups unhappy, prominent among them Madhesis who claimed it to be discriminatory. The agitating Madhesis blocked border check points in Nepal to stop supplies from India and pressurise the Government to amend the Constitution. Nepalese leaders accused India of creating the economic blockade and pushing the country into a crisis.

However, on Saturday, the two sides decided to put the past behind. Foreign Secretary S Jaishankar said the two neighbours had a “forward looking” meeting at Hyderabad House during which nine pacts were signed. 

 While lauding Nepal’s effort to bring in a new Constitution, Modi said its success would depend on consensus and dialogue. “The announcement of the new Constitution in Nepal came after decades of struggle there. It is a major achievement. I appreciate the contribution of the political leadership and people of Nepal to it. But its success depends on consensus and dialogue. I am confident that on the basis of these principles and through political dialogue and by taking all sections together, you (Oli) will be able to resolve all issues relating to the Constitution satisfactorily and take Nepal forward towards the path of development and stability,” Modi said in a joint media statement in Oli’s presence.

The two PMs held elaborate discussions on nearly all issues concerning the two nations. Oli sought Modi’s help in inspiring more investors to put money in Nepal and assured them security and protection. India is already the biggest investor in Nepal having 46 per cent of the total share among all. Modi said both sides are determined not to allow terrorists and criminals to use the open borders and in this regard the security agencies of the two countries will intensify cooperation.

Oli appreciated India’s help during the earthquake and in this regard an agreement was signed on utilisation of the $250 million grant component of India’s assistance package for post-earthquake reconstruction assistance in four sectors, namely housing, health, education and cultural heritage.

In housing, $100 million would be utilised for construction of 50,000 houses in 14 severely-hit districts while $50 million each would be utilised in health, education and cultural heritage sectors in 31 earthquake-affected districts of Nepal.

Modi suggested giving importance to heritage reconstruction so that tourism could pick up and having owner-driven housing projects. He also advised Nepal on developing ayurved tourism.

India will also help in strengthening road infrastructure in Terai area of Nepal and in this regard one MoU was signed for speedy implementation of remaining work on the Terai Road, totalling 518 km. Two roads totalling 87 km have already been completed. The two sides will open new transit points to boost trade. Modi said these transport corridors can become highways of development.

In order to boost ties, the two countries have established an Eminent Persons Group of eight members with each country nominating four members, preferably a parliamentarian, a lawyer, an economist and a civil society activist.

Before the PM-level talks, External Affairs Minister Sushma Swaraj called on Oli and conveyed that Nepal would always remain a “reliable” friend of India and his visit would deepen the trust between the two countries.

Official sources said Oli told Sushma that he wants to “move forward in the relationship which is not man-made but entirely natural and civilisational.” Sushma and Oli also discussed reconstruction efforts in Nepal that was hit by a massive earthquake in April last year.

India-Nepal Agreements

  • MoU on utilisation of $250 million grant component of India’s assistance package for post-earthquake reconstruction assistance
  • MoU on strengthening of road infrastructure in Terai area of Nepal
  • MoU between Nepal Academy of Music and Drama and Sangeet Natak Akademi
  • letters of Exchange on transit routes: (i) Transit between Nepal and Bangladesh through Kakarbhitta-Banglabandha corridor (ii) Operationalisation of Visakhapatnam Port
  • letters of Exchange on rail transport: (i) Rail transport to/from Visakhapatnam (ii) Rail transit facility through Singhabad for Nepal’s trade with and through Bangladesh
  • Inauguration of Muzaffarpur-Dhalkebar transmission line
  • Establishment of Eminent Persons Group