Minister Rana urges India for additional air routes

By A Staff Reporter,Kathmandu, Dec. 21: Minister for Foreign Affairs Dr. Arzu Rana Deuba has urged India to grant Nepal additional air routes, a demand that the country has long been raising with its southern neighbour. 

With the two new international airports in Bhairahawa and Pokhara and one more in the offing at Nijgadh, the country is in need of enhanced air connectivity. 

Speaking at the Indo-Nepal Economic Conference in New Delhi on Friday, she underlined the significance of such cooperation for Nepal’s aviation and tourism sectors, the Ministry of Foreign Affairs (MoFA) informed in a statement. 

“We have constructed two international airports in Pokhara and Lumbini, both of which are globally significant destinations. Pokhara is a renowned tourist city while Lumbini is the birthplace of Lord Buddha. These airports are not only meant to boost tourism but also to enhance overall connectivity. To operate them at full capacity, we require additional air routes,” FM Dr. Rana said elaborating on her demand made with India.

She also appealed to Indian airlines to increase flights to Nepal and assured them of maximum facilitation, including attractive incentives from the Government of Nepal. According to her, these airports will promote not only tourism but also help strengthen people-to-people ties and bilateral relations between the two nations.

 Dr. Rana said that the full operation of these airports, aided by additional air routes, would unlock further tourism potential between Nepal and India while also contributing to South Asia's connectivity. She cited joint initiatives like the Ramayana Circuit and the Buddha Circuit as effective ways to promote religious and cultural tourism and called for collaborative efforts to realise mutual benefits.

The Foreign Minister invited Indian investors to explore Nepal’s vast opportunities while informing that India remains the largest investor in the country. She highlighted Nepal's recent sovereign credit rating of ‘BB-’ as evidence of its investment-friendly environment. The rating is best in South Asia after India.

“Nepal has restructured its policies and enacted numerous laws to improve the investment climate. We are ready to sign bilateral investment agreements with as many countries as possible and offer attractive incentive packages, including tax benefits and export promotions,” said FM Dr. Rana. 

She expressed the government's support in guaranteeing the full repatriation of investment earnings.

She also appreciated recent progress in cross-border infrastructure development, especially in the areas of rail links, petroleum pipelines, electricity transmission lines and motorable bridges. 

She also urged India to ease non-tariff barriers, facilitate border trade, and implement bilateral agreements to ensure balanced trade relations.

FM Dr. Rana acknowledged the breakthrough in cross-border electricity trade. 

An agreement for it was signed by former Nepali Prime Minister  Sher Bahadur Deuba and Indian Prime Minister Narendra Modi in April 2022. 

"This agreement set the stage for Nepal to export up to 10,000 MW of electricity to India within a decade. Additionally, a recent tripartite deal has enabled Nepal to sell 40 MW of electricity to Bangladesh via the Indian grid," she said while adding that the agreement has encouraged hydropower developers to invest in Nepal’s energy sector. 

Dr. Rana had reached New Delhi directly from Germany to participate in the conference on Thursday. She will return to Nepal on Monday.