India, Nepal ink several MoUs on infra, cross-border energy

Prime Minister Narendra Modi on Thursday announced to take the partnership with Nepal to "Himalayan heights" while announcing a fertiliser plant in Nepal, a second intra-country petroleum pipeline, conclusion of a revised trade and transit agreement, fresh joint hydropower projects and a new long-term power trading agreement that will enable India import from Nepal 10,000 MW of power in the next 10 years.

Together with visiting Nepal Prime Minister Pushp Kumar Dahal 'Prachanda', Modi also launched several projects and presided over the exchange of several more MoUs and agreements. The two sides also signed an agreement on cross-border digital payment mechanism between Nepal and India.

Prachanda called the fresh initiatives as "path-breaking" which will provide fresh momentum to the ties. He welcomed the Indian initiative to enable Nepal to export power to Bangladesh. ET had reported earlier last week that India would provide transit for export of Nepal's power to Bangladesh. ET had also reported that New Delhi and Kathmandu would conclude a pact on the digital payment mechanism.

Addressing a joint press conference with Prachanda after their bilateral meeting, Modi said, "We have established new rail links to increase physical connectivity. Long-term power trade agreement has been established between India and Nepal today. This will give strength to the power sector of our countries."

Modi said Prachanda and he had taken these decisions to make the partnership a "super hit". They focused on contentious issues and felt dialogue was the key to resolution. Modi referred to differences on the border and said there was nothing that could not be resolved by talks. Prachanda mentioned the problem of floods and inundation and said the two sides are taking steps to ameliorate this annual problem.

Modi said that under the revised Transit Agreement, Nepal can use new rail routes and inland waterways. New rail links will be established and Nepal Railway employees will be trained in Indian Railway institutions. Two cross-country bridges would enhance connectivity in the higher reaches.

Modi also welcomed the pact on cross-border payments which would benefit thousands of students, pilgrims and tourists from both countries and the Nepalese coming to India for medical treatment.

Cooperation in the power sector, he said, gets more strength with the signing of pacts on hydropower projects while mentioning Lower Arun (cleared by Nepal three days before Prachanda's visit) and Lower Arun (investment pact signed last year) while also setting fresh deadlines for the Pancheshwar multipurpose project. The Nepalgunj-Rupadia Integrated Checkpost was also inaugurated along with Bathana-Biratnagar Cargo Train.