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The border between India and Nepal should not become a barrier, Prime Minister Narendra Modi said on June 1 as the two sides signed a series of agreements on energy and transport including the export of Nepal’s hydropower to Bangladesh through Indian territory. Welcoming Prime Minister Pushpa Kamal Dahal Prachanda who is on a four-day visit to India, Mr. Modi said, the two countries should fast-track projects related to the Ramayana circuit.
“I remember that 9 years ago, in 2014, within three months of taking charge of office, I made my first visit to Nepal. I said at the time that we will establish ties between India and Nepal that would overcome the presence of borders. Today we signed the Transit Agreement. It will help Nepal’s population access India’s inland waterways.” Mr. Modi said India will take forward the 2022 India-Nepal vision document for cooperation in the power sector that sets an ambitious goal in India-Nepal power trade and transmission.
“Taking this forward, a long-term Power Trade Agreement has been signed between India and Nepal today. Under this Agreement, we have set a target of importing 10,000 MW of electricity from Nepal in the coming years,” said PM Modi. Focusing on energy cooperation, Mr. Modi mentioned that a “new pipeline will be constructed from Siliguri to Jhapa in eastern Nepal.”
The two sides signed a number of agreements including an MoU between NHPC and VUCL (Vidyut Utpadan Company Ltd), Nepal, for the development of Phukot Karnali Hydroelectric Project and a Project Development Agreement for Lower Arun Hydroelectric Project between SJVN (India) and Investment Board of Nepal.. Foreign Secretary Vinay Mohan Kwatra said the two PMs agreed to “achieve tangible and time-bound progress on the Pancheshwar multipurpose project”. Mr. Modi also announced that India will cooperate with Kathmandu to set up a fertilizer plant in Nepal.
The two Prime Ministers participated through a video link in the groundbreaking ceremony of the Gorakhpur-Bhutwal Transmission Line — on the Indian side. Mr Kwatra announced that the two countries signed the revised Treaty of Transit under which Nepal will get access to India’s inland waterways. He described it as a “once in a generation” pact and added, “This will contribute very significantly to the development of trade and investments between India and Nepal.”
“I appreciate India’s willingness to facilitate export of hydropower from Nepal to Bangladesh through India. We have agreed that the transmission of up to 50 megawatts of power will commence soon,” said Mr. Prachanda. The two Prime Ministers jointly inaugurated the Indian Railway cargo train from Bathnaha in India to Nepal Customs Yard. The rail link was built with an Indian grant. They also inaugurated Integrated Checkposts (ICPs) at Nepalgunj in Nepal and Rupaidiha on the Indian side. They participated in the groundbreaking ceremony of ICPs at Bhairahawa and Sonauli as well as Phase II facilities as part of the Motihari-Amlekhgunj Petroleum Pipeline.
Prime Minister Prachanda will proceed to Ujjain on June 2 where he will visit the Mahakaleshwar temple. Mr Modi highlighted India’s cultural links with Nepal and said, “The religious and cultural ties between India and Nepal are very old and very strong. In order to further strengthen this beautiful link, Prime Minister Prachanda ji and I have decided that the projects related to Ramayana circuit should be expedited.”
