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US President Donald Trump on Thursday offered to sell state-of-the-art fighter jets to India as he and Prime Minister Narendra Modi vowed to ramp up trade, rekindling a bond that defies the new US administration's punitive approach to much of the world.

Modi, only the fourth world leader to visit the White House since Trump's return, described the fellow nationalist as a friend and told him he was adopting a take on his "Make America Great Again" slogan.

Trump said that he found a "special bond" with Modi and India and, in an uncharacteristic if ironic show of humility, complimented Modi as being a "much tougher negotiator" than he is.

Successive US administrations have seen India as a key partner with like-minded interests in the face of a rising China, and Trump announced that the new administration was ready to sell one of the top US military prizes -- F-35s.

"Starting this year, we'll be increasing military sales to India by many billions of dollars," Trump told a joint news conference with Modi.

"We're also paving the way to ultimately provide India with the F-35 stealth fighters," Trump said.

India would join an elite club of countries that include NATO allies, Israel and Japan that would be allowed to buy the F-35, which can operate without detection at supersonic speeds.

India currently relies on an ageing fleet of Russian fighter jets as well as a small number of French-made Rafale aircraft.

India's arch rival and neighbour, Pakistan, however said it was "deeply concerned" about the sales.

"Such steps accentuate military imbalances in the region and undermine strategic stability. They remain unhelpful in achieving the objectives of durable peace in the region," said Shafqat Ali Khan, spokesman for the Ministry of Foreign Affairs.

Continuing a push from his predecessor Joe Biden, Trump said that the two countries also planned investment in ports, railways and underseas cable to "build one of the greatest trade routes in all of history," running from India to Israel to Europe and beyond.

Trump has dueled with both friends and foes on economic issues. Hours before meeting, Trump announced reciprocal tariffs on all countries, including India.

Speaking next to Modi, Trump called India's "unfair, very strong tariffs" a "big problem" but said that the two countries would hold negotiations to close a trade deficit in India's favor.

Modi said that the world's largest and fifth-largest economies would work on a "mutually beneficial trade agreement" to be sealed "very soon," with a focus on oil and gas.

Joining Trump's meeting with Modi was SpaceX and Tesla tycoon Elon Musk, who has launched an aggressive effort as Trump's right-hand man to overhaul the US bureaucracy.

Modi also met one-on-one with Musk, raising questions over whether the world's richest man was meeting the Indian leader in an official or business capacity.

The Indian premier posted pictures of himself shaking hands with the beaming Musk, with several children on Musk's side of the room, and Indian officials on the other.

Modi offered quick tariff concessions ahead of his visit, with New Delhi slashing duties on high-end motorcycles -- a boost to Harley-Davidson, the iconic US manufacturer whose struggles in India have irked Trump.

India has already accepted a US military flight carrying 100 shackled migrants last week as part of Trump's immigration crackdown. The treatment drew protests from India's opposition which accused Modi of sacrificing the dignity of citizens to please Trump.

Trump in turn announced the United States would extradite to India a suspect in the bloody 2008 siege of Mumbai, whom he called "one of the very evil people in the world."

Tahawwur Hussain Rana, a Canadian citizen of Pakistani origin who was based in Chicago, was convicted in 2011 and later sentenced to 13 years in prison.

Modi and Trump share much in common, with both campaigning on promises to promote majority communities over minorities and both doggedly quashing dissent.

In 2020, Modi delighted Trump by inviting him before a cheering crowd of more than 100,000 people to inaugurate the world's largest cricket stadium in his home state of Gujarat.

Trump could visit India later this year for a summit of the Quad -- a four-way grouping of Australia, India, Japan and the United States. AFP 

Nepal has raised the issue of new air routes with India yet again.

During a recent meeting with the visiting Ministry of External Affairs Additional Secretary, Munu Mahawar, in Kathmandu, Minister for Foreign Affairs Dr Azu Rana Deuba raised the issue of new air routes that Nepal has been demanding for a long time. 

Nepal has been in discussions with India for over a decade regarding new air entry routes. The government has been negotiating with the Indian government to utilize the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur for air route access. However, Nepal has not yet secured air routes from these locations.

Gyanendra Bhul, the information officer at the Civil Aviation Authority of Nepal (CAAN), said that Nepal has presented all proposals to India regarding new routes. “Nepal has raised the issue of new air routes in all bilateral meetings - from the Prime Minister level to the ministerial level. While Nepal has presented its case, the Indian side has not yet reached a decision,” he added.

Due to India’s inability to provide a conclusive decision on new routes, the government’s plan to bring aircraft into Nepal using the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur has been stalled.

Nepal had formally requested India to allow air access through Janakpur, Bhairahawa, Nepalgunj and Mahendranagar during Prime Minister Narendra Modi’s visit to Kathmandu in 2014. In May 2023, talks were held in New Delhi between officials from Nepal's Ministry of Culture, Tourism, and Civil Aviation, the Civil Aviation Authority of Nepal, and the Airports Authority of India, but no conclusion was reached.

According to CAAN, if India provides new air entry routes as requested by Nepal, it would save flight costs and time, and also resolve the issue of air traffic congestion. Currently, 90 percent of international flights enter Nepal through Simara, while flights from China enter through the Makalu region in Sankhuwasabha district and flights from Bhutan enter through Mechi. The air routes for exiting Nepal include Simara, Biratnagar, Janakpur, Mahendranagar and Bhairahawa.

Nepal has been facing several challenges such as air traffic congestion, disrupted flight schedules, and the need to hold aircraft in the air for extended periods due to the reliance on a single route. CAAN has been saying that if additional routes are made available, managing air traffic would become easier. If India agrees to at least allow the Bhairahawa and Nepalgunj routes, the distance for flights entering Nepal would be significantly reduced, CAAN officials say.

Currently, aircraft coming to Gautam Buddha International Airport in Bhairahawa from Gulf countries enter the Nepali airspace from Simara and fly westward to Bhairahawa as they are not allowed to enter the country from the west. Experts say new international airports in Bhairahawa and Pokhara will be unfeasible if aircraft are not allowed to enter from the west.

After the April 2015 earthquake in Nepal, India committed $250m in grant assistance for post-earthquake reconstruction in Nepal, the Embassy of India in Kathmandu said on Monday. “The grant was allocated in four different sectors—Housing ($100m), Education ($50m), Health ($50m) and Cultural Heritage ($50m). A JPMC (Joint Project Monitoring Committee) mechanism was set up in Aug 2017 to monitor the progress of these projects,” the statement added.

India and Nepal held the fifth meeting of the JPMC on post-earthquake reconstruction projects on Monday in Kathmandu. The Indian delegation was led by Munu Mahawar, Additional Secretary (North), Ministry of External Affairs, Government of India and the Nepalese delegation was led by Padma Kumar Mainalee, Joint Secretary, Ministry of Urban Development, Government of Nepal.

The meeting was also attended by several other representatives of the Governments of India and Nepal, consultants and other stakeholders engaged in implementation of the projects.

The meeting carried out a comprehensive review of the progress of the Government of India assisted post-earthquake reconstruction projects in housing, education, health and cultural heritage sectors in Nepal. It acknowledged the successful completion of the projects agreed under the housing sector in 2021 and the education sector in 2024.

According to the Embassy of India, Kathmandu, in health and cultural heritage sectors, both sides expressed satisfaction on the progress achieved and agreed to expedite the early completion of projects under these sectors.

Since the last JPMC meeting in Oct 2023, Government of India has handed over 26 projects in the education sector including Tribhuvan University Central Library in Kathmandu, 32 projects in the health sector and three projects in the cultural heritage sector, amounting to Rs 3.35bn.

In addition, 43 projects in the health sector and nine projects in the cultural heritage sector amounting to Rs 1.73bn have been completed during this period, as per the Embassy of India Kathmandu.

Both sides appreciated the positive socio-economic impact of the reconstruction projects, particularly in employment generation and extension of health and education facilities in remote areas.

AS (North) also visited the Gusthal Mahavihar reconstruction project, a cultural heritage site located in Guita Tole, Lalitpur Metropolitan City-8. During the visit, he reviewed the project’s progress and engaged with members of the user community.

Both sides agreed to hold the next meeting of the JPMC on a mutually convenient date.

The 76th Republic Day of India was celebrated amidst a special ceremony at the Indian Embassy in Kathmandu on Sunday.

Ambassador of India to Nepal Naveen Srivastava inaugurated the program by unfurling India's national flag.

During the event, the Indian ambassador conveyed his greetings to the members of the Indian diaspora in Nepal. This was followed by a telecast of the address to the nation from President of India, Smt. Droupadi Murmu.

A large number of members of the Indian community attended the function.

On the occasion, Ambassador Srivastava honored the widows and next of kin of deceased soldiers of the Indian Armed Forces by disbursing their dues worth Rs 5 Crore, reads a statement issued by the Indian Embassy in Kathmandu.

In addition, an amount of Rs 23.29 crore was also disbursed to the widows and next of kin of 219 deceased members of Indian Armed Forces. This payment covers benefits under the Army Group Insurance (AGI) program, including death-in-service benefits, extended insurance benefits, and AGI maturity payments in the year 2024.

The ambassador also unveiled the Bhu Puu - 2025 magazine covering the welfare initiatives of the Government of India for ex-servicemen domiciled in Nepal.

The Embassy also donated books amounting to Rs 23.5 Lakh to 29 educational institutions spread across six provinces in Nepal, according to the statement. This initiative is designed to provide educational materials to students in remote areas, responding to their specific needs and requests.

During the program, the top 50 scorers from Nepal in the Bharat Ko Janiye (BKJ) Quiz, held from November 11 to December 11, were felicitated by awarding them Certificates of Achievement.

The BKJ Quiz aims to inspire foreign nationals and the Indian community living abroad to deepen their knowledge and understanding of India. As part of the prize, the top 30 winners of the quiz from around the world were invited to India for a two-week BKJ Yatra earlier this month.

Among the winners was Nikhil Kumar Das from Nepal, who had the honor of being part of this special Yatra to India.

A video detailing the progress made in India-Nepal relations in the past years was played at the event.

The celebrations also witnessed cultural performance by students of Swami Vivekananda Cultural Centre of the Embassy and Kendriya Vidyalaya, Kathmandu.

The event was live-streamed on Mission's social media platforms.

The Nepal-India Inter-Governmental Committee (IGC) has made a detailed review of all areas of bilateral trade and economic relations. The IGC is a bilateral mechanism aimed at strengthening trade and business relations between the two countries.

The meeting of the IGC related to trade, transit and cooperation to control unauthorized trade was held in Kathmandu on January 10 and 11.

The agenda included review of transit treaty and trade treaty including electrification of Raxaul-Birgunj railway line, proposed amendments to existing agreements, coordination of norms and gradual development of trade infrastructure. The two sides also reviewed issues related to mutual market access, IPR and taxes.

In the meeting, the Indian side informed that Nepal's request for supply of 200,000 metric tonnes of wheat has been approved.

The Nepali side thanked the Indian side for its continued support in ensuring the supply of essential commodities to Nepal.

At the request of the Nepali side, the Indian side has agreed that in the case of cargo-in-transit in Kakarbhitta (Nepal)-Banglabandh (Bangladesh) via Phulbari (India) route, the maximum axle weight of 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles can also be applied in the case of Nepali vehicles as per the prevailing regulations of the Ministry of Road Transport and Highways.

Responding to the request of the Nepali side, the Indian side informed that Sal (Shorea robusta) seeds and squash have been included in India's plant quarantine order.

Requests for inclusion of Jatamsi-root extract, Fragrant Kokila Berry extract, Fragrant Rhizome extract and Timur Berry extract in the list of processed products have also been accepted.

At the request of the Indian side, the Nepali side said that it was positive to review the documents related to reclassification of products such as 'IPAQE 28' in its technical system.

The Indian side briefed about the problems seen in the export of milk to Nepal. The Nepali side has agreed to positively consider the Indian side's request for milk products, including mohi (whey), cheese, which are not produced in sufficient quantities in Nepal.

The meeting welcomed the bilateral initiatives aimed at strengthening uninterrupted inter-country connectivity between India and Nepal through construction of new integrated check posts and railway links, among others.

The two sides expressed their commitment to advance bilateral connectivity, reflecting the shared vision of prosperous bilateral trade.

The two sides have agreed to form a joint working group to discuss the online approval with Nepal and the South Asian Free Trade Area (SAFTA).

Secretary at the Ministry of Industry, Commerce and Supplies Govinda Bahadur Karki led the Nepali delegation to the meeting.

Similarly, the Indian delegation was led by Sunil Barthwal, Commerce Secretary at the Ministry of Commerce of India in the meeting attended by senior officials from the Embassy of India in Kathmandu and various ministries.

A joint secretary-level inter-governmental sub-committee (IGSC) meeting on trade, transit and cooperation to control unauthorized trade was held in Kathmandu from January 12 and 13, 2024.

The second meeting of Nepal-India Joint Business Forum (JBF) has laid emphasis on expansion of bilateral trade and business.

The meeting aimed at further deepening the economic and business relations between the two countries concluded on Saturday.

On the occasion, Minister for Industry, Commerce and Supplies Damodar Bhandari said that India is Nepal's largest trading partner and both countries should take the decisions of the JBF meeting into implementation.

He also underscored on carrying out works for resolving the problems seen in the import and export between the two nations in an easier manner.

Ministry Secretary Govinda Bahadur Karki spoke of the need of practical implementation of the topics decided in the JBF meeting.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal said there is immense possibility in the economic sector between Nepal and India. He stressed on moving ahead through policy reforms and exploring practical solutions for addressing the problems seen in both trade and business sectors.  

He called for removing the non-tariff barriers, facilitating in resolving the problems arising due to the certification process of the Bureau of Indian Standards (BIS) in export of Nepali goods, for air connectivity between Bhairahawa and Pokhara airports of Nepal with various Indian cities and for the smooth supply of explosives required for construction and development of hydroelectricity projects.

The FNCCI President also raised the topic of expanding Nepal's access to various Indian ports, including Mundra (Gujarat), Dhamara (Udisha) and Jawaharlal Nehru port (Mumbai).

The JBF meeting is a part of Nepal-India Commerce Secretary-level Meeting. In the meeting, the representatives of Nepal and India had discussed trade, investment, energy, tourism, agriculture, information technology and infrastructure development, among other topics.

An agreement was reached in the JBF meeting for the promotion of clean energy through collaboration in hydroelectricity and renewable energy, solar and wind projects, of tourism and connectivity, of easing the trans-border trade by strengthening the road, railway and air connectivity and of enhancing trade and cross-border investment, agriculture and medicinal plants, providing high-yielding seeds and technology by removing the quota for agricultural productions, of collaboration in research and commercialization of medicinal herbs and of cooperation in digital technology and startups.

The agreed upon topics of the meeting have been handed over to the Commerce Secretary of Nepal and India on Saturday itself.

JBF President Bhawani Rana and Santhil Kumar handed over the agreement to Commerce Secretary of India Sunil Barthwal and Nepal's Commerce Secretary Karki.

The Indian Commerce Secretary expressed the commitment to take the initiative for the implementation of the agendas raised in course of the JBF meeting.

Ambassador of India to Nepal, Naveen Srivastava said this meeting is important in terms of the economic issues between the two countries and that he would take initiatives for facilitating the topics raised in the JBF meeting.

JBF Nepal President Bhawani Rana reiterated that there is extensive possibility of investment and trade between Nepal and India, and there should be the required facilitation for taking benefit from this.

Similarly, from the Indian side N Sunil Kumar believed that there would be more convenience in the coming days, as the road, railway and air connectivity between Nepal and India is improving.

It is agreed that the JBF next meeting will be convened in New Delhi, India.

The 18th edition of Nepal-India military exercise with the aim of security and expansion of bilateral relations is beginning at Saljhandi in Rupandehi from Tuesday.

The battalion-level joint military exercise named 'Suryakiran' focuses on jungle warfare, counterterrorism in difficult geography, establishment of peace keeping mission as per UN Charter, humanitarian aid in disaster management and relief mobilization, internal capacity building, and environmental protection.

The two-week long training will be attended by Sri Jung Battalion of Nepali Army and the 11th Gorkha Rifle of Indian Army.

Spokesperson of Nepali Army, Gaurab Kumar KC, informed that the joint military training was expected to foster friendly relations and trust between Nepal and India and expand cultural relations as well. Professional collaboration will also be augmented with it.

The 17th edition of the joint exercise was held in Pithauragadh of India last year.

So far, the number of Nepali Army personnel attending the joint training reached 4,215 while the number from the Indian side stands at 4,442.

Such joint exercise had begun since 2067BS.

PHD Chamber of Commerce and Industry (PHDCCI) in association with the Consulate General of India (Birgunj, Nepal) and Chamber of Commerce & Industry-Chitwan (CCIC) and under the aegis of its bilateral economic Think Tank “India-Nepal Centre”, organized the “India-Nepal Economic Partnership Summit 2024” on December 14, 2024 at CCIC Headquarter, Chitwan, Nepal.

The Summit was organized to create a uniquely important platform for discussing a forward looking bilateral economic partnership agenda.  

The deliberations supported by the decision-makers' will help in opening new avenues of business engagements in the key sectors of economy besides giving a much needed boost to the economic hub of Chitwan and trade near the crucial India-Nepal border in Birgunj.

The main objective of the summit was to create a platform through joint action for deeper economic engagement between India and Nepal (with focus on remittance, imports, exports and Balance of Payment (BoP) challenges in Nepal), to channelize investment from India to Nepal and other ways round, to re-establish the India-Nepal bilateral relations as the core strength of the sub-regional co-operation in South Asia, to create a sustained convergence of industry and government, for thriving on the mutually beneficial India-Nepal bilateral relations in all crucial realms, to bring-in to notice the hidden potential in the Border Area Development Program and paving the way for India’s major involvement in helping the infrastructural facelift of Nepal’s bordering districts in Bihar and making them the gateways of India-Nepal Trade Connection, to discuss and ideate for making Cluster-based Economic Zones across Nepal and to further relax the cross-border trade norms to secure and sustain the greater economic engagements, reads a statement.

While setting the tone of the Summit with interpreting the existing macroeconomic scenario of Nepal, the Session Chair Atul K Thakur, Secretary, India-Nepal Centre, PHDCCI reflected on the necessity for having a collaborative approach among the stakeholders in the government and industry to tap the rich potential and also cope the challenges in post-pandemic times through India-Nepal economic cooperation. With emphasis on the Summit’s dwelt discussion points (New Roadmap for Accelerating India-Nepal Bilateral Cooperation; Promoting Industrial Development in Nepal and India; Revisiting Bilateral Trade Policies; Expanding Bilateral and Sub-regional Economic Cooperation; Improving Border Area Development and Connectivity), the discussions took place during the Summit.

 In his opening remarks, Suman Shrestha, President, Chamber of Commerce & Industry-Chitwan (CCIC) acknowledged that industrial development of Nepal is affected by the adverse economic fundamentals and that it necessitates closer collaboration between the business communities of India and Nepal.

He dwelt on CCIC’s remarkable contributions for the sustainable industrial development in Chitwan region and reassured for further deepening of India-Nepal bilateral economic cooperation with keeping the industries in Chitwan open for closer business partnerships, according to the statement.

 Anil Kumar Agrawal, President, Birgunj Chamber of Commerce & Industries (BICCI) recounted Birgunj’s achievements as a major trade hub of Nepal and how BICCI has been contributing over the decades in making the industry and trade, the mainstay of this place crucially important for India-Nepal economic relations. He said that, with the PHDCCI India-Nepal Centre, such bilateral economic forums will be a regular exercise to help the bilateral economic ecosystem between India and Nepal.

Devi Sahai Meena, Consul General of India, Birgunj, Nepal reassured India's support to accelerate the economic cooperation between India and Nepal. Through policy and implementation, India has been a key development partner of Nepal. He said, “Government of India is providing assistance for development of cross-border trade related infrastructure. It includes up-gradation of four major Integrated Check Posts at Birgunj-Raxaul, Biratnagar-Jogbani, Bhairahawa-Sunauli and Nepalgunj-Rupaidiha to international standards; upgrading approach highways to the border on the Indian side; broad gauging and extending rail links to Nepal. Integrated Check Posts at Birgunj and Biratnagar are fully functional.

Nepalgunj-Rupaidiha ICP was inaugurated by the Prime Ministers of both the countries on June 1, 2023, construction work of the integrated check post at the Sunauli-Bhairahawa border started at the same time. The Jaynagar–Janakpur–Bardibas cross border railway line between India and Nepal has been reopened after upgradation. This line is operational now between Jaynagar and Kurtha and will be extended upto Bardibas.  Motihar – Raxaul-Amlekhganj petroleum pipeline is transporting diesel to Nepal. 

This pipeline project between India and Nepal is the first of its kind in the entire South Asia and was jointly inaugurated by Prime Ministers of India and Nepal on 10.9.2019. 

Muzaffarpur – Dhalkebar 400 KV power transmission line built with Govt of India’s grant assistance was inaugurated by Prime Ministers of both the countries in 2016. 

The line is operating at its full capacity.  Similarly, Raxaul – Parwanipur Cross Border Transmission line built with Govt of India grant is also operational.” He added that the India-Nepal relations are supported with complementarities and people-to-people, something that should be counted as strong foundational support. He also shared an overview of the main constituents of economic cooperation and challenges at policy level that need to be tackled.

 Among others, the “India-Nepal Economic Partnership Summit 2024” was also addressed by the leading expert on Nepal affairs Mahesh Kumar Agrawal, Bihar State Coordinator, Seema Jagran Manch; Atul Koirala, Board Member, BP Koirala India-Nepal Foundation & Techno-Entrepreneur and Anand Jha, Vice President (Head of Government Engagement: India & South Asia), Visa.

Well-timed and meant to foster the border trade with emphasis on bilateral and subregional economic cooperation, the second edition of “India-Nepal Economic Partnership Summit 2024” concluded at Chitwan with providing business linkages and partnerships.

Chief of the Army Staff Ashok Raj Sigdel and Indian Army Chief, General Upendra Dwivedi, who is on a visit to Nepal, held bilateral talks at the Army Headquarters, Bhadrakali today.

The official meeting between the two Army Chiefs was focused on mutual partnership and interests between the militaries of the two countries.

During the talks, brief information about Nepali Army's duties and responsibilities, and the work performance was presented, NA Spokesperson Gaurav Kumar KC informed.

Before that, Indian Army Chief Dwivedi received the guard of honor presented by the Nepali Army, according to the Directorate of NA Public Relations and Information.

On the occasion, the Indian army chief planted a tree in the Jangi Adda (Headquarters complex).  The Indian army chief laid a wreath at the Memorial to the Brave Soldier located at the Army Pavilion in local Tundikhel.

President Ram Chandra Paudel is scheduled to confer on Army Chief Dwivedi the rank of Honorary General (Maharathi) of the Nepali Army today.

There is a tradition of Nepal and India conferring the rank of Honorary General on each other's Army Chief since 1950.

This is General Dwivedi's first official visit to Nepal after his appointment as the Chief of the Indian Army on June 30.

He is scheduled to call on Prime Minister KP Sharma Oli and Defence Minister Manbir Rai tomorrow.

The seventh edition of the South Asian Football Federation (SAFF) Women's Championship is kicking off at Dasharath Stadium in Kathmandu today.

ANFA shared that Nepal along with the Maldives, Pakistan, Sri Lanka, India, Bhutan and Bangladesh are taking part in the championship.

The final match of the championship is scheduled to take place on October 30.

According to ANFA, the participating teams have been divided into two groups. Defending champion Bangladesh, India and Pakistan are placed in Group 'A', while Nepal, Bhutan, Sri Lanka and Maldives are in Group 'B'.

The opening match of the tournament will be held between India and Pakistan today. Nepal will take on Bhutan on Friday.

Once a new government is installed in Kathmandu, deliberations on Nepal-India relations take the center stage of national politics.  However, attempts have been made for a long time to find a permanent solution to the problems seen in Nepal-India relations. Be it the border dispute or the friendship treaty of 1950 and others, there have been a long series of discussions between the two countries. In this context, the Eminent Persons Group’s (EPG) report is currently being discussed in Nepal at a level that has once again achieved par. After the formation of the new government consisting of the Nepali Congress and CPN-UML, when the Minister of Foreign Affairs of Nepal, Arzu Rana Deuba went on an official visit to India, questions were raised about whether Minister Deuba would raise the issue of the EPG report. Same concerns were raised with the erstwhile governments. While releasing a book written by one of the members of EPG, Suryanath Upadhyay; on Sept 7, PM Oli expressed his belief that the Indian prime minister would receive the EPG report, despite the fact that the current government does not appear to have made a formal comment on it. The prime minister’s commentary carries meaning in bilateral matters, whether it is at a book launch or in other casual settings. Importantly, it has extra significance because the current prime minister and India have a turbulent past.

Is it accurate, nevertheless, that this report is being discussed aggressively in Nepal? In what way does this report matter for Nepal? Shall Nepal be adhered to this report? The purpose of this article is to depict how, during the last six years, the EPG report has been seen as an enigma and what path Nepal needs to tread on.

Formation and flux

In the year 2011, when Baburam Bhattarai was the prime minister, during his visit to India, the proposal to form EPG was made public through a joint statement. The purpose of the proposal was to further strengthen multi-dimensional relations between the two countries. The then prime minister of India, Manmohan Singh, also agreed to this. Five years later, in 2016, there was a formal agreement on the formation of EPG. After the announcement of the EPG, the group held a meeting in Kathmandu and formally started the study. The mandates assigned to the EPG were to analyze previous treaties, mostly the 1950’s treaty and agreements between the two countries. In a similar vein, to suggest essential actions to improve the social-economic, political, and cultural ties as well as mutual trust between the two nations.

Likewise, suggesting other areas required for fostering and bolstering friendship between the two countries, as well as institutional frameworks for ties and steps to eradicate cross-border crime while boosting peace, prosperity, and cordiality. The EPG held a total of nine meetings in both countries and approved the report of the EPG in 2018. On behalf of Nepal, Bhekh Bahadur Thapa (coordinator), Rajan Bhattarai, Nilambar Acharya, and Suryanath Upadhyaya were members. Bhagat Singh Kosiari (coordinator), Jayanta Prasad, Mahendra P Lama, and Bhuvanchandra Upreti, members from India, are in the group. The EPG members agreed to submit the approved report to the Prime Minister of India first and then to the Prime Minister of Nepal. After six years, the Indian side has not received the report.

Following the adoption of the 2015 Constitution of Nepal, the UML, led by KP Sharma Oli, formed the government. The Nepali Congress was out of power. The Madhesh-centric parties were agitating because of dissatisfaction with the fast-tracking of the constitution. Nepal and India's political ties were not harmonious. Given this context, the formation of the EPG between Delhi and Kathmandu was created purely for ‘political face saving’ of each side. The agitated Madhes based parties resisted the formation of the EPG without a broader consultation. The EPG was meant to assess the boundary between India and Nepal, but instead it is controlled by leftists, with not a single person from borderland included. The formation of EPG and its procedure seems to be divisive prima facie inside Nepal.

Don’t be stuck; be strategic 

Despite the political and diplomatic ups and downs, there has been no decrease in the intensity of economic exchanges and people-to-people relations between the two countries.

The India-Nepal Treaty of Peace and Friendship  was signed by the last Rana prime minister of Nepal, Mohan Shamsher Jang Bahadur Rana, and the then Indian ambassador to Nepal, Chandreshwor Prasad Narayan Singh on 31 July 1950 and came into force the same day. However, the Treaty of 1950 was engulfed in controversy before its ink had even dried. That controversy kept coming to the surface from time to time. The controversy mostly comes from ‘communist-oriented intellectuals’ and from those who believe in the nationalism shaped by the late king Mahendra. As a result, this issue remained an important issue in the relationship between the two countries. Undoubtedly, the treaty signed by the prime minister from the Nepalese side and the Ambassador from the Indian side reflects prima facie inequality. Similarly, in the report of EPG, Nepal has put forward a proposal that some articles of the peace and friendship treaty of 1950, such as 5, 6, and 7, are not up-to-date.

The way the Nepali members of EPG have been leaking  the contents of the report in various programs from time to time shows how impatient the members are, and it also cannot be said that there will be no influence of other external forces against India while the EPG study is going on. As some of Nepal's former foreign ministers and members of EPG sometimes make irresponsible comments in programs organized by various NGOs and institutions, Nepal should now make this report public, albeit unilaterally. This appears to be strategically weak and a violation of EPG’s privacy. This will only give India a space to act more tactically.

By the time the EPG group is formed and it completes its studies, India has a government led by Narendra Modi. During this period, a government was formed in Nepal under the leadership of KP Sharma Oli, Pushpa Kamal Dahal, or Sher Bahadur Deuba. However, none of the prime ministers have been proven instrumental in handing over the EPG report. In the recent past, UML Chair Oli, who led a powerful and stable government and became the main opposition, raised the issue of EPG from the rostrum in the Parliament, but this report was not prioritized even during Oli's tenure. Now is the time, and like the EPG members, the prime minister who understands the seriousness of the relationship between Nepal and India should discuss the relationship between the two countries better than commenting in informal forums. The jingoism between Nepal and India should be ended by fundamentally solving the enigma of EPG.

Incidentally, the Nepali Congress, the largest party of Nepal, is also in the role of an ally in the journey of driving the country along with the Oli government. The current coalition government can hold talks with the government of India. Finally and above all, it seems relevant that everyone remembers the analogy given by diplomat Madhurman Acharya to India in relation to Nepal. He depicts in his book, Nepal World View: ‘India is a kalpbriksha, the tree that gives you the fruit you wish. If handled carefully, India provides many solutions to Nepal’s problem. But when the wrath of the bigger neighbor becomes difficult to manage, it can be the source of trouble as well.’

@randhirJNK

Nepal is going to export an additional 251 megawatts of electricity to Bihar and Haryana states of India.

 The Central Electricity Authority (CEA) under the Ministry of Power of India has given approval to the Nepal Electricity Authority to export an additional 125.89 megawatts to the state of Haryana and 125 MW to Bihar.

The NEA is currently selling 190 megawatts of electricity to the state of Haryana.

The surplus electricity in Nepal is sold to Bihar and Haryana every year from June to October. Along with this, the amount of electricity to be sold to the state-level distribution companies of India has reached 360 megawatts.

Nepal exported electricity worth Rs 16.93 billion to India in the last fiscal year 2023/24.

The Nepal Electricity Authority (NEA) made an income of Rs 16.93 billion by exporting 1.94 billion units of electricity to India last fiscal year.

NEA has been selling the surplus power at Indian Energy Exchange’s Day ahead and real time market at competitive rate as well as to Indian company NTPC Vidyut Vypar Nigam Limited as per mid-term power agreement.

The NVVN has been selling the power to India's Haryana state. Average rate of exported power is Rs 8.72 per unit.

Power worth Rs 16.81 billion was imported to Nepal last fiscal year, according to NEA.  Around 183 billion units of electricity was imported from India to meet the high demand of electricity at home during winter season after power production decreases from hydropower projects in lack of water flow in rivers and rivulets across the country.

The average rate of power imported during the winter season is Rs 9.17 per unit. Power more than Rs 122.3 million was exported to India as compared to import last fiscal year.

Nepal had imported power worth Rs 19.44 billion in the fiscal year 2022/23 while electricity worth Rs 10.45 billion was exported.

Executive Director of NEA, Kulman Ghising said even though power should be imported to fulfill the domestic demands for a few months of winter season till next few years, the volume of export will also increase.

Newly appointed Prime Minister KP Oli has said that he is ready to cooperate with neighboring country India.

Thanking his Indian counterpart Narendra Modi, Prime Minister Oli said that he is committed to work together.

PM Oli took to social media and said: “I would like to thank you for the best wishes. I am ready to cooperate with you for mutual benefit and to strengthen Nepal-India relations. We can take the historic relationship to a new height.”

Earlier, Indian Prime Minister Modi had congratulated Oli on his appointment as the Prime Minister of Nepal.

The Indian Prime Minister had said that he was ready to work closely to further strengthen the friendship between the two countries.

He emphasized that the two countries should work together for the progress and prosperity of the people.

Cross-border electricity transmission lines with a combined capacity of 1,580 MW have been built and deployed for electricity trade between Nepal and India.

The voltage levels of these transmission lines range from 33 kV to 400 kV, with capacities from 45 MW to 800 MW. The 400 kV Dhalkebar-Muzaffarpur transmission line alone can transmit 800 MW of electricity, according to the Nepal Electricity Authority (NEA).

NEA officials state that Nepal can immediately export up to 1,500 MW if India grants approval. Currently, NEA has permission to export 690 MW of hydropower to India. India has allowed Nepal to export power generated by Chilime, Solu Khola, Kabeli B-1, Likhu-4, Lower Modi, Solu-Dudhkosi, Dordi Khola, Upper Kalanga Gad, Upper Chamelia, Solu Khola, Super Madi, Upper Balephi 'A' and Upper Chaku 'A', among other projects.

NEA has been selling energy in the day-ahead market of the Indian Electricity Exchange (IEX) and has signed a five-year agreement to sell 200 MW of hydropower to the Indian state-owned company NTPC Vidyut Vyapar Nigam Ltd.

The Dhalkebar-Muzaffarpur transmission line is the only high-capacity cross-border line operational at present, with a maximum capacity of 2,000 MW. However, the two countries have agreed to transmit only up to 800 MW from this line.

Several other cross-border lines, including two 132 kV Kataiya-Kusbaha and Kataiya-Kusbaha II with capacity of 120 MW and 160 MW, respectively, the 132 kV Raxaul-Parwanipur (160 MW), Ramnagar-Gandak (65 MW), Mainiya-Sampatiya (160 MW), and Tanakpur-Mahendranagar (70 MW), are also in operation.

According to NEA officials, Nepal and India will have infrastructure to support transmission of 12,700 MW by 20230. Many transmission line projects are under different stages of construction. The 400 kV Dhalkebar-Sitamarhi transmission line with a capacity of 2,500 MW is one such project. The transmission line, which is dedicated to export power generated by the Arun III hydropower project, is expected to come into operation by 2025/26. The 132 kV Nepalgunj-Nanpara with a capacity of 200 MW is expected to be operational by 2025/26. 

Other notable 400 kV cross-border transmission line projects include New Butwal-Gorakhpur, Inaruwa-Purnea and Kohalpur-Lucknow. All these lines can transmit up to 2,500 MW.

NEA officials say Nepal has requested permission to export 1,200 MW this year. 

Nepal is in an energy surplus situation during wet months. The country, however, faces a shortfall of energy during the dry season when power generation by its run-of-river (RoR) projects shrink to nearly a third of installed capacity. This necessitates import from India during the dry months even though energy goes to waste during the wet months.

Talks are underway to export 40 MW of electricity from Nepal to Bangladesh using Indian energy infrastructure. Officials from Nepal and Bangladesh believe that the success of this power agreement could open doors for more energy cooperation between the two countries in the future.

Indian Ambassador to Nepal Naveen Srivastava and Lomanthang Rural
Municipality Chairman Tasi Nharbu Gurung laid a foundation stone for the construction of dormitory building for Lowo Nyiphug Namdrol Norbuling Monastic Schoo.

The dormitory is being built with the Government of India’s financial assistance at the project cost of Rs 41.40 million under ‘Nepal-India Development Cooperation’.

Political representatives, government officials, social workers, representatives of the Monastic school management were also present on this occasion, reads a statement issued by the Indian Embassy in Kathmandu. 

The Government of India grant under ‘Nepal-India Development Cooperation’ is being utilized for the construction of two floors dormitory building with other facilities for this Monastic school.

The project is taken up as a High Impact Community Development Project (HICDP), under an agreement between the Government of India and Government of Nepal.

This project is being implemented through Lomanthang Rural Municipality, Mustang. The project is an important example of the robust development partnership between India and Nepal, according to the statement.

Chairman, Lomanthang Rural Municipality and Chairman, Lowo Nyiphug Namdrol Norbuling Monastic School and political representatives in their remarks appreciated the continued developmental support of the Government of India in upliftment of the people of Nepal in priority sectors.      

The new building would be useful in providing better education and accommodation facilities to the students of Lowo Nyiphug Namdrol Norbuling Monastic School in Lomanthang Rural Municipality, Mustang and would create an improved environment for learning as well as contribute to the development of the education and religious care and helping in preserving their culture and tradition in this region. 

Since 2003, the Government of India has taken up over 551 HICDPs in Nepal in various sectors and has completed 490 projects.

Amongst these, 59 projects are in Gandaki Province in various sectors, including         17 projects in Mustang.

In addition to these,the Government of India has gifted 1009 ambulances and 300 school buses to various hospitals, health posts and educational institutions in Nepal.  

Amongst these, 119 ambulances and 40 school buses have been gifted in Gandaki Province, including 11 ambulances and five school buses provided in Mustang district. 

As close neighbours, India and Nepal share wide-ranging and multi-sectoral cooperation.

 The implementation of HICDPs reflects the continued support of the Government of India in bolstering the efforts of the Government of Nepal in upliftment of its people, augmenting infrastructure in the field of priority sectors.