Prime Minister Narendra Modi on Monday returned home after sorting out a lot of pending issues with Nepal and giving the neighbouring country funds and technical support for its infrastructure development. The Government of India announced a soft credit line of $1 billion for infrastructure development and energy projects in Nepal.
PM Modi and Nepali PM Sushil Koirala agreed to “review, adjust and update” the Treaty of Peace and Friendship of 1950 and other bilateral agreements. A joint statement released by the two countries said that it was decided to have a permanent solution to the pending Nepal-India boundary issues. The Boundary Working Group (BWG) will undertake the construction, restoration and repair of boundary pillars including clearance of ‘No-man’s land’ and other technical tasks. The Foreign Secretaries of India-Nepal will work on the outstanding boundary issues, including Kalapani and Susta after receiving required technical inputs from the BWG. The Indian side stressed on early signing of the agreed and initialed strip maps of about 98 per cent of the boundary. Since India and Nepal have an open border it was mentioned that this should not be misused by unscrupulous elements posing security threats to either side.
As a goodwill gesture, the Indian Government will construct a dharamshala for the Pashupatinath temple devotees. India will also assist in the conservation and restoration of old monuments in the Pashupatinath Complex besides providing sanitation and hygiene facility. India also offered assistance for development of Janakpur, Baraha Chhetra and lumbini. lumbini will be linked to Indian Buddhist Circuit to promote tourism in Nepal.
India announced enhancement of scholarships from 180 to 250 for Nepalese students and experts. India will also allow short courses-cum-exposure visits for the Nepalese undergraduate students in the Indian universities like Banaras, Kolkata and Delhi University. An Eminent Persons Group on Nepal-India Relations (EPG-NIR) will be established to look at the Nepal-India relations from independent, non-governmental perspectives and suggest measures to expand and consolidate relations between the two. An MoU on Police Academy, Extradition Treaty and MlAT is expected soon.
India will assist construction of a motorable bridge over Mahakali River at Mahendranagar for trade and transit linkage between Nepal and Uttar Pradesh, Delhi and Uttarakhand. India also sought to construct bridges at the border points at Jhulaghat and Darchula. Nepal requested India to allow three additional air entry points at Janakpur, Bhairahawa and Nepalgunj, and cross border direct routes to facilitate direct flights between regional airports Pokhara-Bhirahawa-lucknow.
India will construct of Raxaul-Amlekhgunj petroleum pipeline in the first phase and extend it to Kathmandu in the next phase to facilitate the transport of petroleum products. India and Nepal will simplify transit procedures and facilitate expeditious movement of traffic under the Treaty of Transit.
Both sides agreed to strengthen coordination and consultation to deal with the problem of floods and inundation. On Defense cooperation, the Nepalese side requested PM Modi to waive off outstanding dues of Government of Nepal on account of defence purchases.