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In 2014, when Bharatiya Janata Party (BJP) came to power in India, Prime Minister Narendra Modi emphasized on the effective implementation of Neighborhood First Policy. Over the past 10 years, it has emerged as a central pillar of India’s overall policy when dealing with its neighbors including Nepal. 

The Indian parliament’s external affairs committee has conducted an in-depth study on the implementation of the policy after consultations with the Ministry of External Affairs and experts, and its report highlights immediate neighbors as “the first circle of priority” in India’s relation with the world. The report also recommends all ministries and departments to approach their engagements with the neighboring countries with a proactive perspective.

According to the committee, the Neighborhood First Policy over the years has achieved benefits like greater regional connectivity, improved infrastructures, stronger development cooperation in various sectors. It has also urged the Ministry of External Affairs to ensure that development projects undertaken in the neighborhood are executed on time by strengthening the joint project monitoring committees and oversight mechanism for monitoring the progress of various development assistance projects.

Only successful implementation of the policy, the report says, requires concerted efforts such as timely execution of development projects and enhancing mutually beneficial cooperation.

The committee has also pointed out the lack of parliamentary exchanges between India and its neighboring countries, which is the key to effective implementation of the Neighborhood First Policy. On open borders, the committee says that anyone who has crossed the border between India’s Uttar Pradesh and Nepal or Bihar and Nepal knows that the cross-border movement is extremely difficult due to the absence of basic infrastructure.  The committee is of the view that India needs to invest massively in upgrading infrastructure—from roads to rail, from land waterways to ports, from energy and telecommunication to digital customs.

Regarding the regional organizations, the committee says that India’s engagement with its neighbors under regional frameworks— such as South Asian Association for Regional Cooperation (SAARC); Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC); and Bangladesh, Bhutan, India, and Nepal Motor Vehicle Agreement BBIN— is an important element of India’s Neighborhood First Policy.  

The committee has suggested the Indian government to play a more proactive role both in SAARC and BIMSTEC, and formulate a fresh strategy to keep them active and utilize them whenever the occasion arises. The Modi government, however, is not so keen to revive the SAARC process.

According to the committee’s report, SAARC has a strategic importance, so no member country should be allowed to impede its effective functioning, and that collective efforts need to be made by other member countries to thwart any attempts to destabilize it.

The Indian committee has suggested that the Indian government coordinate among the majority of the member countries ignoring one (Pakistan), so that regional cooperation under SAARC is not hampered due to the lack of the response from one country. 

Addressing the parliament, Union Minister of State for External Affairs Raj Kumar Ranjan Singh recently informed the Indian parliament that India accorded utmost importance to expanding connectivity in its neighborhood and beyond, encompassing all elements of physical, cultural economic and people-to-people linkages. 

India’s Act East Policy, Neighborhood First Policy, Security and Growth for All in the Region (SAGAR) and BIMSTEC have strengthened connectivity in the region, he added.

Singh said some of the key connectivity initiatives between India and its neighbors include the BBIN; the India-Myanmar-Thailand Trilateral Highway Initiative; Chabahar Agreement between India, Iran and Afghanistan;, and Bangladesh-China-India-Myanmar Economic Corridor. 

Through Neighborhood First Policy, connectivity, commerce, culture and people-to-people, Singh claimed that linkages with India’s neighbors have been improved.

The Indian parliamentary committee has observed that India’s relations with Nepal have expanded to new initiatives in agriculture, inland waterways, and power sector cooperation.  The Inland waterways between two countries with multi-modal transportation routes via Jharkhand, Bihar and Uttar Pradesh was announced in 2019. Two of the terminals at Varanasi and Sahibgunj have already been completed and work is underway to complete the remaining terminals.

Highlights of the report

• India’s bilateral relations with Nepal have expanded to new initiatives in agriculture, inland waterways, and power sector cooperation. The ‘India Nepal New Partnership’ in Agriculture, which focuses on collaborative projects in agriculture education and R&D, was launched in April 2018.

• The Inland waterways connectivity between India and Nepal with four multi-modal transportation routes via Jharkhand, Bihar and Uttar Pradesh was announced in 2019. Two of the terminals at Varanasi and Sahibgunj have already been completed and work is underway for the completion of remaining terminals.

• The Indian government is in the process of upgrading India-Nepal border trade infrastructure, with an objective to reduce bottlenecks, accelerate clearances and promote the creation of regional economic hubs.

• In view of the importance of cross-border railway link between India and Nepal for strengthening of border infrastructure and greater people to people link, India’s parliament committee for external affairs has urged the Indian government for early operationalization of the ongoing rail link projects and completion of the feasibility study of the proposed Raxaul-Kathmandu broad gauge rail link.

• India’s engagement with its neighbors under regional frameworks like SAARC, BIMSTEC and BBIN is an important element of the Neighborhood First Policy.

• The committee believes while BIMSTEC has emerged as an important regional organization in recent years, not much progress has been made under SAARC due to hurdles created by one member state.

• Though SAARC has made good progress in some areas of cooperation, it has not been able to achieve its full potential as several important connectivity and trade initiatives such as SAARC Motor Vehicle Agreement, SAARC Railways Agreement, Agreement on Regional Air Services, Agreement on Trade in Services, etc. are held up since 2014 due to the lack of consensus among all member states.

• India should take more initiatives for elimination of destabilizing forces like terrorism, organized crime, drug trafficking, etc. in the region through collective efforts of all neighboring countries.

• The parliamentary committee advises the Indian government to implement the BIMSTEC Master Plan for Transport Connectivity at the earliest.

• The committee is of the opinion that no member country should be allowed to impede the effective functioning of regional forums.

CPN-UML Chair KP Sharma Oli has advised Prime Minister Pushpa Kamal Dahal to step down given his ‘poor showing’. 

Organizing a press conference on Sunday, Oli and other leaders criticized the government over ‘ineffective handling’ of important matters such as the Lalita Niwas land-grab, the 100-kg gold smuggling case and obstructions in the Parliament.

Chair Oli expressed surprise that the Home Minister and the Finance Minister had not quit thus far despite their incompetencies. The party leading the government has prevented the (main) opposition from airing their views during parliamentary sessions, he said, “Whenever the opposition attempts to address the assembly, members of the ruling party promptly rise and vociferously intervene, causing disruptions. They thus thwart our efforts to facilitate a smooth functioning of the Parliament, leaving us with no option but to obstruct the House.”

The government’s shortcomings extend beyond the legislative arena, Oli maintained, “Even in terms of public service delivery, the government has faltered in producing tangible outcomes.”

“Shouldn’t we be attentive to people’s problems? Amid floods and landslides, the government’s response seems lackluster. Farmers are standing in queues to acquire a mere five kilograms of fertilizer, burdened by exorbitant costs,” he said.

Chair Oli also accused the government of being afraid to form a high-level committee for investigating the 100-kg gold case, insisting that the probe committee will be instrumental in finding whether the government is complicit in the case. 

Rajendra Gautam, head of the UML’s Publicity Department, sought the arrest of former prime ministers Madhav Kumar Nepal and Baburam Bhattarai in connection with the Lalita Niwas land-grab, citing the recent Supreme Court order directing top decision-makers to bring them under investigation. “Despite the court’s directive, police have not even questioned them (the two ex-PMs) regarding their involvement in the Lalita Niwas scandal, where they are alleged to have played a significant role through multiple cabinet decisions.”

Gautam expressed doubts about the Home Ministry’s departments conducting impartial investigations, reiterating that the UML believes an independent high-level investigation committee should be established to examine the gold case. “During investigations, the government has treated the ruling parties and the opposition differently,” he said, noting that individuals close to the ruling parties have not been thoroughly investigated.

At the program, the Pushpa Kamal Dahal-led government came under the main opposition’s fire for displaying arrogance through ‘vengeful moves against the opposition, dissemination of false information and attempts to conceal wrongdoings’.

The party contended that the present government is manipulating tax rates to favor specific business interests, allowing certain entrepreneurs to exploit state resources through extensive contracts.

But political analyst Krishna Pokharel says that the press briefing appeared to predominantly reflect UML Chair Oli’s sense of frustration. “It appears that this frustration stems from his party’s extended period of being out of power,” he says the conference mainly consisted of negative remarks rather than substantive discussions.

Nepali Congress leader Shekhar Koirala has demanded the formation of a high-level probe committee to investigate the one quintal gold smuggling case.

Speaking at the Parliament Party meeting, leader Koirala was of the opinion that the high-level probe committee should be formed to take the investigation to a logical conclusion.

CPN (Maoist Center) Chairman Pushpa Kamal Dahal became the Prime Minister with the support of the Nepali Congress.

Prime Minister Dahal himself is not positive towards forming a high-level probe committee to investigate the latest gold smuggling scam.

The CPN-UML has been obstructing Parliament proceedings for a long-time demanding formation of a high-level probe committee.

Last week, Home Minister Narayan Kaji Shrestha had responded to the questions about the gold smuggling in the Parliament.

He had said that another committee is not necessary until the Central Investigation Bureau (CIB) of the Nepal Police submits the report.

The UML lawmakers have been obstructing Parliament after they were not satisfied with the answers of the Home Minister.

Congress leader Koirala has also demanded the formation of a high-level probe committee to investigate the gold smuggling case like that of the UML.

On the occasion, Koirala said that Nepali has been turning into a hotbed for international smugglers.

Meanwhle, he expressed his dissatisfaction over the arrest of lawmaker Sunil Sharma.

The CPN (Maoist Center) leaders are engaged in an internal discussion before the Cabinet reshuffle.

The Maoist leaders have reached the Prime Minister’s official residence in Baluwatar to discuss Cabinet reshuffle and contemporary political issues.

Maoist Center Chairman and Prime Minister Pushpa Kamal Dahal, Home Minister NarayanKaji Shrestha, Energy Minister Shakti Bahadur Basnet, Local Administration Minister AmanLal Modi, Tourism Minister Sudan Kiranti and Deputy General Secretary duo Barshaman Pun and Janardan Sharma are present in the discussion.

Prime Minister Pushpa Kamal Dahal is preparing to expand the Cabinet by roping in the CK Raut-led Janamat Party.