The Union External Affairs Minister (EAM) Dr. Subrahmanyam Jaishankar visited Nepal on 4 & 5 January 2024. He was invited by the Foreign Minister of Nepal, Narayan Prakash Saud to co-chair the 7th India-Nepal Commission meeting in Kathmandu.
- During his visit, he met Nepal President Ram chandra Paudel, and former Prime Ministers of Nepal: Madhav Nepal, K.P. Sharma Oli and Sher Bahadur Deuba.
Key Highlights:
i.Nepal inked long term power deal with India to export 10000 MW electricity over 10 years.
ii.India and Nepal signed four major agreements that deal with areas such as renewable energy, power, space and technology and for implementing High Impact Community Development Projects (HICDPs).
iii.India will extend financial assistance of USD 75 million to Nepal for reconstruction efforts in earthquake hit-areas.
India to purchase 10K MW Power from Nepal in next 10 years
During the official visit of S Jaishankar, India and Nepal signed a long-term pact on electricity trade.
- The agreement was signed in the presence of Shakti Bahadur Basnet(Minister for Energy, Water Resources and Irrigation).
- Gopal Sidgel, Secretary, Ministry of Energy, Water Resources and Irrigation of Nepal and Pankaj Aggarwal, Energy Secretary of India signed the agreement on behalf of their respective countries.
Key Points:
i.According to the pact, Nepal will export 10,000 MW (MegaWatt) of electricity to India over the next 10 years.
ii.It also allows private entities in Nepal to participate in the import and export of electricity.
iii. As per the agreement, various government and private entities in India will engage in power trade with Nepal through short-term, medium-term and long-term contracts.
India and Nepal co-chaired the 7th India-Nepal Joint Commission meeting
S Jaishankar, External Affairs Minister, India and Narayan Prakash Saud, Foreign Affairs Minister, Nepal co-chaired the 7th India-Nepal Joint Commission meeting held in Kathmandu, Nepal. India-Nepal Joint Commission was established in 1987.
- The main objective of the meeting was to review the overall bilateral relationship and trade and economic ties between two countries.
- Key areas addressed during the meeting:
i.Comprehensive discussion on land, rail and air connectivity projects.
ii.Cooperation in defense and security, agriculture, energy, power, water resources, and people-to-people and cultural exchanges.
Key Highlights:
i.Indian Public Sector Unit, NTPC Limited (Formerly -National Thermal Power Corporation) signed a Memorandum of Understanding (MoU) with Nepal Electricity Authority with primary objective of strengthening cooperation in the development of renewable energy.
ii.New Space India Limited (NSIL) collaborated with Nepal Academy of Science and Technology (NAST) to facilitate the launch of the Munal Satellite on India’s Polar Satellite Launch Vehicle (PSLV).
iii.Also, Government of India and Nepal signed an agreement in which Indian government will provide grants for implementation of HICDPs.
- The new agreement has increased the budgetary ceiling for implementation of HICDPs from Nepalese Rupee (NPR). 5 crore to NPR. 20 crore
iv.S Jaishankar and Narayan Prakash Saud jointly inaugurated three 132-KV cross-border transmission lines which include:
- The second circuits of the Raxaul-Parwanipur line
- The second circuit of Kataiya-Kusaha line
- The new Nautanwa-Mainhiya line
India to provide USD75 million to Nepal for reconstruction efforts in earthquake-hit areas
EAM S Jaishankar announced that India will provide financial assistance of USD75 million for the reconstruction of infrastructure in western districts of Nepal affected by 2023 earthquake.
- The announcement was made during the inauguration of Tribhuvan University Central Library and other reconstruction projects undertaken in Kathmandu after 2015 earthquake in Nepal.
Significance of India-Nepal relations:
i.Nepal shares a border of over 1850 Km with five Indian states: Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.
ii.Nepal being a land-locked country depends on India for the transportation of goods and services.
About Nepal:
Prime Minister – Pushpa Kamal Dahal ‘Prachanda’
Capital – Kathmandu
Currency – Nepalese Rupee (NPR)
