Nepal's ex-PM calls for review of 1950 treaty; seeks Indian FDI

Communist Party of Nepal-Maoist Centre chairman Pushpa Kamal Dahal has called for a review of the 1950 India-Nepal treaty which, he said, can be achieved through diplomacy and dialogue.

Former prime minister Dahal, popularly known as Prachanda, is currently in New Delhi on a three-day visit at the invitation of BJP president JP Nadda. He was speaking at an event organised by the Foundation for Public Awareness and Policy on Saturday.

"There are some issues left by history that need to be addressed in good faith to fully realise the potential of Nepal-India relations and bilateral cooperation," he said. "The matters related to the 1950s treaty, boundary, and the EPG report need to be resolved through diplomatic efforts and dialogue. In the spirit of good neighbourliness, we can make our relations problem-free."

Prachanda also stressed that the report prepared by the Nepal-India Eminent Persons Group should be accepted and the relationship between the two countries should be strengthened. Pointing out that the relationship between Nepal and India has been strong since time immemorial, he said all problems can be resolved through diplomatic dialogue.

Nepal and India formed the EPG in 2016 with a mandate to review and suggest a new blueprint of Nepal-India relations in the changed global and regional context. The panel submitted its report in 2018, where it also suggested reviewing the 1950s peace and friendship treaty as well as streamlining the Nepal-India open border, among other issues.

Prachanda also requested India to increase investment in Nepal's agriculture, infrastructure and tourism. He said the Nepal government has given priority to the export industry and held that there is an opportunity to get high returns by investing in it.

He also hailed the recent agreement and understanding reached between Nepal and India.

Nepal holds immense potential in hydropower generation, he said, and as an economic powerhouse, India has a growing demand for electricity. "Bilateral cooperation in the power sector will therefore deliver mutual gains. Nepal's hydropower is an answer to issues of energy security as well as green growth."

In the meeting with Prachanda, external affairs minister S Jaishankar said Nepal has been prioritised under the 'Neighborhood First Policy'. "India will always be a reliable partner in Nepal's desire for development and prosperity, reflecting the policy of neighborhood first," the minister said.