Prime Minister, Narendra Modi visited Nepal to attend the 18th SAARC Summit in Kathmandu on 26-27 November 2014. The fact that, it was PM’s second visit to Nepal in a short span of six months “reflects the importance we attach to our unique and special relations with Nepal” he said.. Besides meeting with Prime Minister Sushil Koirala, Modi also met Nepal President Ram Baran Yadav, leaders of the Nepali Congress, the Communist Party of Nepal (UML) United Communist Party of Nepal (M) and Madhesi. The focus of Prime Minister Modi’s visit to Nepal was on four Cs — cooperation, connectivity, culture and constitution.
Prime Minister Narendra Modi held talks with Nepal Prime Minister Sushil Koirala on key strategic issues. Number of agreements were signed, which include a pact on $1 billion assistance to Nepal. This will be utilized for hydropower, irrigation and infrastructural development projects. Strategic issues, including defence and security, were also discussed. The India-Nepal Bilateral Motor Vehicle Agreement for Passenger Traffic envisages regular bus services between the two countries. It simplifies the procedure for movement of private and non-regular vehicles across the India-Nepal border. This agreement would facilitate seamless and hassle-free movement of people of both countries, further enhancing people to people contact and also promoting tourism.
Prime Minister Narendra Modi’s plan to inter-link rivers (ILRs) across the country will have one more project, bringing the total number to 31. The new link plans to bring surplus water from Sharda River on the Indo-Nepal border to the parched Yamuna River near Delhi via Uttarakhand and Uttar Pradesh. Once implemented, the project would help the Yamuna R to have ‘uninterrupted’ flow of water between Delhi and Agra and even beyond till the point the river Chambal joins it and gives it a normal flow.
Both India and Nepal seek to enhance cooperation in the tourism and hospitality sector. Being neighbours India and Nepal can benefit from better cooperation in the tourism sector. Joint efforts should be made to tap the full potential of opportunities available in the sector. Besides holiday, adventure and mountaineering tourism, immense scope exists in developing spiritual tourist circuits, such as the Buddhist Circuit (Lumbini-Bodh Gaya-Sarnath-Kushinagar). Currently, India is the largest source of tourists coming to Nepal with 1, 65,815 Indian tourists visiting the country in 2012. Total tourist inflows into Nepal in 2012 were 803,092 which amount to nearly 40% of tourist flows into Nepal.
Janakpur-Ayodhya, Lumbini-Bodh Gaya and Kathmandu-Varanasi are proposed to be linked as sister cities owing to their deep cultural and historical linkages. The sister-city relations among these cities will help in promoting cultural exchange, sharing of knowledge and expertise as well as develop stronger people-to-people relations.
Indians travelling to Nepal will now be able to use Indian currency notes of Rs 500 and 1000 denominations. At present, only Rs 100 denomination notes are allowed for Indian visitors, which hamper tourists and remittances alike. PM said that the Government of India is actively considering lifting of the prohibition on circulation of 500 and 1000 denomination of Indian currency in Nepal that had been in place since May 2000.
A MoU between both the governments was signed on establishment of National Police Academy, at Panauti. The proposed National Police Academy is located approximately 32Km South East of Kathmandu. Under the MoU, Government of India will fund the cost of about INR550 crores towards construction of the Academy. Earlier, the feasibility report of the Academy was completed with the assistance of National Police Academy, Hyderabad. Currently, Government of India provides training courses in India to around 350 Nepal police officials every year. The Academy will cater to train 410 Nepalese police officers annually.
Prime Minister Narendra Modi urged Nepal to frame its constitution at the earliest based on consensus. Addressing a ceremony for handing over a Trauma Centre adjacent to the Bir Hospital, Modi said that “if Nepal smiles it is reason for India to be happy”. The 200-bed trauma centre has been built by India at a cost of Rs 1.5 billion in the city’s Bir Hospital, the oldest medical facility in the country.Prime Minister handed over to Nepal, Dhruv Mark 3, an Advanced Light Helicopter (ALH) which will be used for military operations.The Dhruv Mark 3 is manufactured by state-owned aerospace and defence company Hindustan Aeronautics Ltd and comes equipped with Shakti engines, new electronic warfare (EW) suite and warning systems, automatic chaff and flare dispensers and improved vibration control systems, showing India’s commitment to strengthening ties.
. Nepal’s location makes it strategically important for both countries. Historically, Nepal has always been a close ally of India, while maintaining good relations with China. India-Nepal Treaty of Peace and Friendship of 1950 is the bedrock of the special relations that exist between the two countries. Under the provisions of the treaty, Nepalese citizen have enjoyed unparalleled advantages in India, availing the facilities and opportunities at par with Indian citizens. The Treaty has enabled Nepal to overcome the disadvantages of being a land-locked country.
However, Nepal’s domestic politics have recently shown inclination towards Beijing because China is helping the country to reduce its considerable trade deficit. This has allowed Sino-Nepal relations to improve. Nepal gets monetary aid as a reward for echoing the ‘One China policy’ and banning any kind of anti-China activities on its soil. The frequency of recent high-level political and military visits carried out by both countries have showcased a new phase of diplomacy, which external observers describe as the most allied neighbors in South Asia. India will have to craft and review its policies that would mitigate the growing influence of China. The initiative by the present government to revive ties with Nepal by investments and proposal to review the Peace and Friendship Treaty of 1950 presents an opportunity to reset the bilateral relationship.
India- Nepal ties have been natural due to our historical linkages, culture and tradition. PM’s visit to Nepal has further cemented ties and given boost to improved diplomatic relations with our immediate neighbour. With China on mind and accounting for the possibility of anti-India insurgents making use of the neighbour’s territory, it is very important for India to maintain strong relations with its immediate neighbours and re-affirm mutual commitment towards enhancing development, cooperation and economic aid and not allow their territories to be used for interests “inimical” to each other.
The frequent high level visits by the leaders of the two countries at different points of time and the interactions thereofto sustain good bilateral relations between the two countries constitute the hallmark of the ties between Nepal and India. Furthermore, such visits have helped promote goodwill, understanding and cooperation between the two countries inject a fresh momentum to further consolidate Nepal’s age-old and multi-dimensional relations of friendship and cooperation with India on a more mature and pragmatic footing. Towards this end, PM’s efforts are the right step towards strengthening bilateral relations with its immediate neighbour and India’s closest ally in South Asia.