Visit a point of departure in many respects: PM Prachanda

Kathmandu, June 3

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ termed his official visit to India from May 31 to June 3 ‘a successful trip’ which ‘heralded’ an important beginning in multiple sectors of bilateral relations including trade, energy cooperation, infrastructure development and border disputes.

“This visit has achieved almost everything that I had announced before embarking on it,” PM Prachanda said while talking to journalists upon his arrival at the Tribhuvan International Airport after concluding his visit on Saturday evening.

According to him, the visit has rekindled the confidence in the leaders of both the countries about the future cooperation and development of bilateral relationship. “There was a kind of doubt or let’s say a clarity was lacking in the relationship between the two nations. This visit has cleared it. Prime Minister Narendra Modi said that our relationship should be raised to the heights of the Himalayas,” he said.

The two PMs held bilateral delegation-level talks at Hyderabad House in New Delhi on Friday in cordial and friendly atmosphere characterizing the age-old friendly ties between the two countries, the Embassy Nepal in New Delhi informed in a statement.

While the two Prime Ministers reviewed the wide-ranging areas of bilateral relations and cooperation, including trade and transit; hydropower, power trade and transmission lines; cross-border railways, motorable bridges, petroleum pipelines and ICPs; irrigation, river training, inundation and flood control; agriculture; culture and civil aviation, they also talked about the contentious issues of border management.

 

Border disputes discussed

According to PM Prachanda, his Indian counterpart PM Modi had assured to take some positive steps towards addressing the issues related to the border. While the report of the Eminent Persons Group (EPG) on Nepal-India Relations was not an agenda of discussion, PM Prachanda said that it was not a proper time to raise it. “We will find some other time to talk about the report. Passing negative comments on critical matters won’t help Nepal, we need to focus on implementing the past and present agreements and understandings signed by the two countries,” he said.

He also said that the two prime ministers also discussed the possible alternatives for resolving the border issues including Kalapani, Lipulek and Limpiyadhura region which is being encroached by India for many years in the past.

 

 

PM Prachanda also informed that they cited India-Bangladesh model of land-swapping to find solution to the Kalapani issue.  

Likewise, according to him, there were significant achievements in terms of opening new air entry routes. There were positive discussions on Nepal’s request for additional air entry routes, operation of Instrumental Landing System (ILS) at the Gautam Buddha International Airport (GBIA) in Bhairahawa and operating two-way flight services to various cities of India including New Delhi from Nepalgunj and Bhairahawa.

The installation of ILS would enhance the flight safety and efficiency at the GBIA.

Meanwhile, the two countries have signed the Transit Treaty which will facilitate Nepal for the use of India’s inland waterways and transport the cargo in bulk. PM Prachanda termed it as one of the biggest achievements of his visit to the southern neighbour.

 

Long-term energy cooperation

Likewise, a strong understanding has been formed in terms of enhancing cooperation in hydroelectricity sector. India has agreed to facilitate the first trilateral power transaction from Nepal to Bangladesh, through Indian grid with an export of 40 MW of power.

“Both sides committed towards greater cooperation at sub-regional level including in the energy sector. The Prime Minister of Nepal thanked the Government of India for the approval of the transmission line projects proposed under the 4th Lines of Credit (LOC-IV),” read the statement by the embassy.

While PM Modi stated that India aimed to increase the quantity of hydropower import from Nepal to India to 10,000 MW in the next 10 years, PM Prachanda requested him for approval of additional 1,200 megawatts of hydropower for export from Nepal to India including the 456 MW Upper Tamakoshi Hydropower project at the earliest.

In addition, the two countries have also agreed to finalise the Detailed Project Report (DPR) of the Pancheshwor Multipurpose Project, an ambitious project to be developed in Mahakali River in the western border of Nepal, within three months. “Construction of Pancheshwor Project would begin within a year from the date of the two governments in Nepal and India approving the DPR,” said PM Prachanda.

These developments and understandings will enhance the bankability of Nepali hydropower projects and more investment could be attracted in this sector.

The two prime ministers also discussed the problem of flood and inundation along Nepal-India border and instructed early convening of the existing bilateral mechanisms to take necessary measures for effective prevention of the flood and inundation before the onset of monsoon.

 

Trade cooperation

To reduce the ever-growing trade deficit of Nepal, PM Prachanda had requested for non-reciprocal access for Nepal’s agricultural and primary products to the Indian market. The two prime ministers directed for early convening of the Commerce Secretary level mechanism to address the issues related to trade, including the review of Treaty of Trade.

“We have directed the responsible officials to work towards early finalization of MOU on mutual recognition of certificates and accrediting of the testing labs. I have requested India the lifting of countervailing duty on Nepali jute products,” said PM Prachanda.

The two prime ministers have also agreed to promote cooperation in the field of agriculture, including research and development, capacity building, natural farming and use of nano-fertilizers. Both leaders agreed to set up a fertilizer plant in Nepal with the participation of public and private sector entities from Nepal and India to meet the fertilizer needs of both Nepali and Indian farmers with adequate assurance of market in both the countries.

“We have directed the concerned authorities to explore the viability of such a plant,” said the Prime Minister.

He also said that Indian cooperation would also be received for the development of GP Koirala Institute of Health Sciences, establishment of Nepal Institute of Technology in Sudurpaschim Province, construction of Cricket Stadium in Chitwan, Sports Village in Dhangadhi, and motorable bridges over the Mahakali River.

 

Signing and groundbreaking

During the visit, the two countries exchanged the Treaty of Transit between Nepal and India, MoU for the development of Integrated Check Post at Dodhara-Chandani, MoU on cooperation in the field of petroleum infrastructure, MoU between the Institute of Foreign Affairs of Nepal and Sushma Swaraj Institute of Foreign Service of India, MoU for the development of Phukot-Karnali 480 MW Hydroelectricity Project, Project Development Agreement of Lower Arun 669 MW Hydroelectricity Project, and MoU between Nepal Clearing House Limited and National Payment Company India Limited for cross-border payments.

The two countries reviewed the progress of ongoing projects with a view to their timely completion. The two prime ministers directed activating all bilateral mechanisms in order to expedite the works in their respective areas of competence and carry forward the bilateral cooperation. They remotely inaugurated the ICP at Nepalgunj-Rupaidiha, flagged off the inaugural-run of Indian cargo train to Nepal on the newly built Bathnaha-Biratnagar, Nepal Customs Railway, and PM Modi handed over the Kurtha-Bijalpura Section of railway line.

They performed the groundbreaking of Phase II of Motihari-Amlekhgunj Petroleum Pipeline Project, 400KV Butwal-Gorakhpur Transmission Line, and ICP at Bhairahawa-Sunauli. The extension of Motihari-Amlekhgunj petroleum pipeline will be extended up to Chitwan while another cross-border petroleum pipeline from Siliguri to Jhapa will also be constructed on grant assistance of India.

 Published in The Rising Nepal daily on 4 June 2023.