PM’s Visit Boosts Ties With India

The four-day official visit to India by Prime Minister Pushpa Kamal Dahal Prachanda has proved to be effective in reviewing the whole gamut of age-old multidimensional relations and cooperation between the two friendly neighbours. Premier Prachanda made the trip to India at the invitation of his Indian counterpart Narendra Modi from May 31 to June 3. During the visit, the two sides signed seven various agreements ranging from increasing power trade and connectivity, installing additional petroleum pipelines, developing agriculture to promotion of culture and civil aviation. Prime Minister Prachanda has termed his official visit to India as ‘successful’ because the trip has heralded a significant beginning in many areas of bilateral relations in economic cooperation, infrastructure development and border dispute settlement.  

The one-to-one meetings between the two Prime Ministers as well as the delegation-level talks were held in a cordial and friendly environment. The two leaders also expressed their commitments to sustaining the pace of engagement in varied areas and further consolidating the friendly ties on the basis of equality, mutual trust and respect and reciprocal benefit. One of the most notable achievements of the visit is that India has agreed to purchase 10,000 megawatts of hydroelectricity from Nepal within the next 10 years. This deal is sure to help boost the morale of investors investing in Nepal’s hydropower sector. 

Power trade deal

With her enormous hydropower potentials, Nepal has been able to attract a lot of domestic as well as foreign investment into the development of this clean energy. The country exports electricity in small amount to India, especially in rainy season when the generation of hydroelectricity from run-of-the-river projects goes up. The nation will be able to sell more electricity in the years to come when many power plants under construction will be completed. A number of other power plants are in the pipeline. Investors had been in a state of confusion because of lack of good electricity market. With the agreement to seal a new power trade deal with the southern neighbour, the investors’ predicament is over. Through increasing power trade with India, Nepal is expected to be successful in minimising the ever-widening trade deficit with the former as well. The Himalayan nation is also planning to start exporting electricity to Bangladesh via India.

Another important development is that Nepal and India have gone through the progress of various ongoing projects aiming to complete them on time. The two Prime Ministers also instructed their respective officials to activate all bilateral mechanisms to speed up the work in their respective areas of competence and advance the bilateral cooperation. With physical proximity and cultural similarities, the two nations have continued to enjoy bonds of friendship since time immemorial even amidst some problems.  

During the visit, the two Prime Ministers also remotely inaugurated the Kurtha-Bijalpura section of railway line and the Indian cargo train to Nepal on the newly built Bathnaha-Biratnagar railway and Integrated Check Post at Nepalgunj (Nepal)-Rupaidiha (India). Similarly, they performed the groundbreaking of Integrated Check Posts at Bhairahawa (Nepal)–Sunauli (India), phase II of the Motihari-Amlekhgunj petroleum pipeline project and the 400-KV Butwal-Gorakhpur Transmission Line.

During the visit, representatives of the two nations also exchanged documents of the Treaty of Transit between Nepal and India; a memorandum of understanding  (MoU) for the development of the Integrated Check Post at Dodhara-Chandani; MoU on Cooperation in the Field of Petroleum Infrastructure; MoU between the Institute of Foreign Affairs (IFA) of Nepal and Sushma Swaraj Institute of Foreign Service (SSIFS) of India; MoU for the Development of 480-MW Phukot-Karnali Hydro-electricity Project; Project Development Agreement (PDA) of 669-MW Lower Arun Hydro-electricity Project; MoU between National Clearing House Limited Nepal (NCHL) and National Payment Company India Limited (NPCIL) for cross-border payments.

Meanwhile, India has now granted clearance for the operation of the Instrument Landing System (ILS) at the Gautam Buddha International Airport, Nepal. This is also a vital achievement. Built at a total cost of US$ 76 million, the airport was not in operation in full capacity even after its official opening in mid-May last year. India had declined to give ‘a no objection letter’ to the newly-built aviation infrastructure.  However, India has refused to allow Nepal to open new air-entry routes from Mahendranagar, Nepalgunj and Bhairahawa. Only low-altitude flights are allowed to use these entry points. All big aircraft bound to Nepal must enter the country via Simara. With this compulsion, flights have to take more time to cover the distance, resulting in higher fuel costs. This also makes planes emit an additional amount of carbon and there is also possibility of air accidents. However, Nepali delegation members are hopeful that India will lift this restriction sooner or later.

What is another noteworthy facet is that the two countries have agreed to complete the Detailed Project Report (DPR) of the Pancheshwar Multipurpose Project in three months and the preparation of investment modality within a year. The much-hyped project failed to get through due to India’s apathy for over 26 long years. 

Boundary disputes

However, no progress in resolving the longstanding border disputes has been accomplished.  About nine years back, the two countries had entrusted the foreign secretary-level mechanism with the responsibility of settling the boundary issues. But things did not get going as planned due to the reluctance of the Indian side. Despite this, Indian Prime Minister Modi has reiterated his pledge to deal with all the problems, including the border disputes, amicably. 

India has yet to receive a report prepared by the Eminent Persons’ Group (EPG) on Nepal-India relations. Nearly five years have passed since the eight-member team with four members from each of the two nations finalised the joint report. The document incorporates different recommendations that aim at redefining the bilateral relations between the two nations. The group was assigned to review numerous facets of the bilateral ties, including the 1950 Treaty of Friendship between the two nations. Anyway, the PM’s visit has been instrumental in strengthening the bilateral relations and settling some crucial issues. It has also generated much hope and restored trust between the two countries.

(The author is a deputy executive editor of this daily.)