Submit your Article

A new book titled ‘Kathmandu Chronicle: Reclaiming India-Nepal Relations’ will cover in depth significant aspects of Nepal’s democratic movements, its transition from an absolute monarchy to a federal democratic republic and from a Hindu state to a secular one, the Maoist insurgency, framing of a new constitution, its foreign policy choices, China expanding footprint—and most importantly India-Nepal relations.

Written  by K.V. Rajan, Former Secretary in the Ministry of External Affairs, Government of India and  Former Ambassador to Nepal, and Atul K. Thakur, a renowned policy professional, columnist and writer, the book combines first-hand experience with deep research to throw new light on key events including the hijacking of IC 814,  the Palace Massacre that wiped out King Birendra and his entire family,  the coup by King Gyanendra against democracy, and explains why the much-vaunted India–Nepal ‘special relationship’ has repeatedly experienced setbacks, some of them with long-term implications.

Based on in depth analysis and new resource materials, ‘Kathmandu Chronicle: Reclaiming India–Nepal Relations’ is important not only in explaining the how's and why's of the past but because of its relevance to the geopolitical uncertainties of the post-COVID world, as India asserts its aspirations on the global stage and China and other major countries raise their own profiles in the region.

Both at the level of government as well as civil society, Nepal and India urgently need to come to terms with the past, understand comprehensively and objectively the unique challenges and opportunities offered by the present, and to ‘repurpose’ their relationship if it is to achieve its exceptional potential in the coming years.

K.V. Rajan, to date India's longest serving Ambassadors to Nepal and author of the book, said that “India and Nepal must learn from the past but not live in it. They can build a model cooperative relationship for the needs and expectations of tomorrow's generations, building on their unique common civilizational ties combined with new mindsets and innovative approaches.”

Atul K. Thakur, a long-time Nepal scholar, public intellectual and co-author, said, “Many books on Nepal and its relations with India have been written by scholars and foreign policy practitioners, Nepalese as well as Indian. Yet too many unanswered questions remain, about the how's and why's of the past, the depth and challenges of present trends, and prospects for the future, in an increasingly uncertain post-COVID world.

Premanka Goswami, Associate Publisher, Vintage & Head, Backlist, Penguin Random House India, said, “Historically and culturally, India and Nepal have shared special relationship. Nevertheless, this association has experienced ups and downs.  What are the reasons for these issues?  Why is there so much mutual distrust between two nations?  Kathmandu Chronicle by KV Rajan, India’s longest serving Ambassador to Nepal to date (1995 to 2000) and Atul K Thakur, brings to light many stories of India-Nepal relationship that mostly remained untold and therefore unknown till date. We’re glad to publish the book from Penguin.”  

The Jhulaghat transit point along the Nepal-India border in Baitadi district is to remain closed from this evening in view of the Lok Sabha election in Uttarakhand of India.

Baitadi's Chief District Officer Bhimkant Sharma has said Jhulaghat will remain shut from 6 pm Tuesday until 7 pm on April 19 considering the Lok Sabha polls in Uttarakhand State in India. The election has been scheduled to take place on April 19.

However, in case of emergencies, the border can be reopened through a mutual agreement during the official closure. There is a practice for closing the transit points during an election in the neighboring country.

India will go to polls this month to elect a government for the next five-years. The ruling Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) is seeking a third consecutive victory under the leadership of Prime Minister Narendra Modi with a bigger and broader mandate this time. In a politically charged atmosphere, blame games among and between political parties are common. 

In a surprise entry, Prime Minister Modi raised the issue of Katchatheevu island, a past territorial dispute between India and Sri Lanka resolved in 1974 by the two governments through an understanding. For an Indian electorate, the border dispute with Pakistan and China has made more sense in raising a nationalistic mood in the past. Still, Katchatheevu is a political masterstroke by the BJP targeting the electorate in the state of Tamil Nadu who continue to feel the ire of the 1974 agreement. 

In a recent tweet, Prime Minister Modi took a dig at the opposition party, Indian National Congress (INC), accusing it of weakening India’s unity and interests by giving away Katchatheevu island to Sri Lanka in 1974. Whether ceding Katchatheevu was a shortsighted move by the then firebrand Prime Minister Indira Gandhi, under whose leadership India had defeated Pakistan in 1971, the BJP leaves no stone unturned in framing it as one aimed at political gains. 

The fishermen from both sides used to access an island called Katchatheevu in the narrow Palk Strait between Sri Lanka’s northern district of Jaffna and India’s southern state, Tamil Nadu, to dry their nets and replenishment activities. Historically, Katchatheevu fell under British rule in India and became a contested territory post-Indian independence. 

Following long-held negotiations and existing goodwill, the then Indian PM Gandhi and her Sri Lankan counterpart Sirimavo Bandaranaike signed an agreement in 1974 to demarcate the maritime boundary where Katchatheevu ceded to Sri Lanka. 

Considering the resource richness of the waters, Sri Lanka soon asserted its sovereign rights over the island and prevented Indian fishermen from accessing it. It was against India’s expectations that Sri Lanka would consider cultural and historical aspects and allow Indian fishermen to access the territory. 

Katchatheevu has raised regional sentiments in Tamil Nadu following the detention of 6,184 Indian fishermen and seizing of 1,175 fishing vessels in the last 20 years—as reported by Indian Foreign Minister S Jaishankar. He added that while previous governments ignored and used the issue for political purposes, BJP takes the fishermen’s issue seriously. 

By selecting BJP headquarters to hold a press conference on a foreign policy matter, Foreign Minister S Jaishankar kept the matter under political ambit. He avoided making it the position of the government of India. The Sri Lankan foreign minister has responded, saying Sri Lanka does not intend to entertain further discussions on the matter. 

With BJP expecting to sprout its political clout in Tamil Nadu in the forthcoming elections against powerful regional parties, including ruling Dravida Munnetra Kazhagam (DMK)—an ally of the Congress India National Developmental Inclusive Alliance—it finds Katchatheevu as a solid point to start its campaign. 

Away from the politics of Katchatheevu, small island and island countries are finding prominence in India’s geostrategic thinking today, especially after China’s expansionist entry into the Indo-Pacific. China’s presence in the regional waters became more prominent after Sri Lanka leased its Hambantota Port to China for 99 years. Also, with a China-friendly government in the Maldives, India needs allies to address the China challenge.   

Strategic consideration to find like-minded allies to counter China resulted in the Quadrilateral Security Dialogue or QUAD—a diplomatic partnership between Australia, India, Japan and the United States, committing to supporting an open, stable and prosperous Indo-Pacific that is inclusive and resilient. While China makes little in QUAD’s black and white, the unsaid understanding among the QUAD members is attempting to resolve the China challenge. 

In developing its capabilities, India’s ambitions as a naval power in the Indo-Pacific and beyond are visible from its assertion as a ‘responsible naval power’. Recent rescue missions by the Indian Navy concentrating on combating piracy in the Gulf of Aden and the Arabian Sea have involved deploying guided missile cruisers, marine patrol aircraft and drones to monitor commercial shipping activity in the region.

In conclusion, by raising the Katchatheevu issue, the BJP may have increased the political temperature in Tamil Nadu, but it has not affected India’s relations with Sri Lanka. If something comes up from Sri Lanka, India knows it’s manageable, especially after Delhi rescues it from the economic crisis. However, India’s signaling of its rising naval aspirations, including maritime security in the Indo-Pacific and beyond, must be seen from a broader lens of Delhi’s changing strategic geography.

Eight people including seven Nepalis died in a road accident at Betalghat in Nainital district of India on Monday night.

According to Sub-Inspector at Betalghat Police Post, Anish Ansari, the deceased have been identified as Bishram Chaudhary, Dhiraj Chaudhary, Antaram Chaudhary, Binod Chaudhary, Tilak Chaudhary, Udayram Chaudhary and Gopal Basnet.

Based on the documents found with them, the seven Nepalis were from Babai of the then Bheri zone, according to the police. 

The accident took place when a rented vehicle fell some 150 meters down the road while loading goods. They had been working there to lay pipelines along the roadside around the incident site.

A local driver along with seven Nepalis lost their lives in the accident, he shared. All the bodies have been kept at Nainital Government Hospital.

Similarly, Shanti Chaudhary, wife of Dhiraj Chaudhary, and Janak Chaudhary were injured in the incident.  Sub-Inspector Ansari said police personnel as well as state disaster response teams were deputed to carry out rescue operations.

India’s Ambassador to Nepal Naveen Srivastava on Tuesday discussed with Nepal’s Deputy Prime Minister and Home Minister Ravi Lamichhane security mechanisms between the two countries and the need for strengthening border management to check small crimes as well as human trafficking.

Srivastava paid a courtesy call on Lamichhane at the Home Ministry in Singhadurbar here and the two sides during the meeting discussed the “efforts needed to further consolidate deep, wide and diversified people to people relations between the two countries based on historical ties and geographical proximity,” according to the Home Minister’s secretariat.

The two sides agreed that criminal activities have come under control despite having an open border between the two countries through effective coordination between the security mechanisms of the two countries, a statement said.

Ambassador Srivastava underlined the need for strengthening border management mechanisms to check small crimes and human trafficking in the border area through coordinated efforts, it said.

Srivastava expressed India’s willingness to provide grant assistance for reconstruction works in earthquake-hit Jajarkot and Rukm West districts of western Nepal and provide specialized training to Nepal Police.

Lamichhane underlined the need to expand and upgrade mechanisms in the border area for testing pesticide contents in fruits and vegetables imported from India, according to sources from the Home Ministry.

India will hold a seven-phase general election starting on April 19, with the results to be declared on June 4.

The Election Commission of India announced the schedule of the six-week marathon vote during a news conference in New Delhi on Saturday, Aljazeera reported.

Nearly 970 million voters – more than the entire population of the United States, the European Union and Russia combined – are eligible to cast their ballot, according to the poll panel’s data, making the election the largest democratic exercise in the world.

“We will take democracy to every corner of the country,” Chief Election Commissioner Rajiv Kumar said as he announced the voting dates. “It is our promise to deliver a national election in a manner that we … remain a beacon for democracy around the world.”

Prime Minister Narendra Modi, seeking a third straight term in the vote, has set a target of 370 seats for his Bharatiya Janata Party (BJP) and 400-plus for the National Democratic Alliance (NDA) the BJP heads in the 543-member lower house of parliament, according to Aljazeera.

In 2019, the BJP won 303 seats – the most ever for the Hindu nationalist party that was formed in 1980.

Modi will be challenged by an alliance of two dozen opposition parties, called INDIA or the Indian National Developmental Inclusive Alliance, led by the Indian National Congress.

The alliance formed last year has, however, been struggling to stay united and share seats amicably to be able to put up a one-to-one fight against the BJP.

A victory would make Modi, 73, only the second prime minister after Jawaharlal Nehru, India’s independence hero and its first prime minister, to win a third straight term.

Modi and his BJP have been in campaign mode for months before the dates for the vote were announced.

The prime minister has been flying around the country almost every day, inaugurating new projects, making announcements, taking part in religious events and addressing public and private meetings.

The first phase of the parliamentary election will be held on April 19, second on April 26, third on May 7, the fourth phase on May 13, the fifth on May 20, the sixth on May 25 and the seventh phase on June 1.

In four states – Arunachal Pradesh, Andhra Pradesh, Odisha and Sikkim – the parliamentary and legislative assembly elections will be held simultaneously, with their results to be also declared on June 4.

Bypolls for 26 assembly constituencies across the country will be also be held during the six-week vote.

There will be more than a million polling stations in operation staffed by 15 million poll workers, according to the election commission.

Nepal’s strategic location between two major powers, India and China, makes it a crucial player in the geopolitical dynamics of the region and beyond. The country’s location between the two rising, competing and conflicting powers of Asia (China and India) makes it important for Western powers to strike a strategic balancing act in the region. In this situation, Nepal’s strategic location between two of the emerging countries of Asia makes it imperative for the US to launch a regional maneuver. 

In addition, the US and India maintain strategic relationships in the Asia-Pacific region and Quadrilateral Security Dialogue (QUAD). Global power is shifting toward the Asia-Pacific region with strategic bipolarity between the US and China creating several implications for the global order. These developments indicate that the US-led ‘unipolar world’ may not last last long, making way for a multipolar world with China as one of the power centers. 
In recent years, increased cooperation between India and the US through Washington, DC-led projects like the Millennium Challenge Corporation (MCC) is being seen as a counter to China’s BRI in Nepal. China’s debt-based approach to BRI raises concern about the impact of it on the stability and sovereignty of recipient nations, including Nepal. At the same time, MCC has made significant progress within a short span of time, particularly in Nepal’s energy sector, whereas none of the Chinese projects that Nepal signed under BRI in 2017 have materialized/progressed. 

The US believes China’s BRI project is not just an economic initiative but also a geopolitical one and is part of China’s border strategy to expand as well as deepen its global influence. It believes that one of the primary goals of BRI is to export Chinese development and influence, particularly in the developing world. The US-China bipolar strategic rivalry shows that both powers are in a race to influence each other’s ‘regions’. In this situation, the US strategic entry into Nepal and intense rivalry between BRI and MCC projects are reflective of these two countries’ growing competition in world politics.

China views a growing American role in Nepal’s development in recent years as a threat to its presence in the region. Historically, Nepal’s strategic location has shaped Beijing’s delicate balancing act. 

On its part, Nepal presents a range of opportunities for both India and the US, including ensuring stability and security, facilitating economic growth and promoting democratic values. Both countries have also collaborated on advancing Nepal’s legal system, protecting human rights, promoting gender equality and countering Chinese misinformation. Thus, strategic cooperation between India and the US has fostered sufficient trust to see no significant opposition from India regarding the US-led diplomatic efforts in Nepal. All in all, shared interests of India and the US in Nepal provide a strong foundation for cooperation and coordination between the parties involved. 

China has come up with three new initiatives—Global Security Initiative (GSI), Global Development Initiative (GDI) and Global Civilizational Initiative (GCI), which, per Chinese officials, fall under the BRI umbrella. These initiatives, according to the officials, aim to eliminate the root cause of international conflicts, encourage joint international efforts to bring more stability, improve global security governance and promote durable peace and development in the world. But Nepal has reportedly conveyed its unwillingness to join GSI due to risks of data security, unequal distribution of benefits, looming economic dependence, transparency and debt risks. China’s BRI was also seen optimistically initially, but there has been no progress in the past five years even after signing of an MoU with the strategic community seeing a risky amount of debt and a way for Beijing to use its debt leverage to pursue ambitious strategic plans in Nepal. Though 35 projects were originally identified under BRI, Nepal later brought them down to nine. Still, no government in Nepal has committed to moving ahead with these projects due to “concerns over unclear financial terms of Chinese loans”. 

According to diplomats, the Nepal-US relationship is entering a new phase. The US has three distinct interests in Nepal: Political, economic and strategic/military. In terms of strategy, Nepal’s geopolitical location as a gateway for emerging global powers India and China has shaped US interest in Nepal. Different aid programs and a series of high-level visits in recent years are a clear-enough indication of increasing American engagement in Nepal.
Given this context, Nepal must pragmatically balance competing objectives of India, China and the US to advance national interest and priorities. But our governments have largely failed to take timely decisions and initiatives for national development as well as economic upliftment.

The US’ shifting policy toward Nepal is understood as part of the current global power transition. In Nepal, the US-China rivalry has become more visible over the last few years, presenting a great challenge of taking both MCC and BRI together, and balancing the interest of prevailing superpower and emerging superpowers.

Views are personal

Sun Haiyan, deputy minister of the International Liaison Department of the Chinese Communist Party visited Nepal from Jan 26-29. Among other engagements, she held a meeting with second-rung leaders of the national parties represented in the federal parliament. At the meeting, she said that some forces were trying to spoil Nepal-China relations. Sun didn’t name names but she was hinting at the US and India. 

Of late, bilateral exchanges between the two countries have increased. China has also become more vocal and loud in Kathmandu. At the same time, India and the US have also expedited bilateral exchanges with Nepal at multiple levels. Meanwhile, the current government led by Pushpa Kamal Dahal is grappling to maintain cordial ties with all three powers. 

The Ministry of Foreign Affairs is led by Nepali Congress’s Narayan Prakash Saud who is an inexperienced politician in the realm of foreign policy and international relations. This article delves into how the current government is dealing with India, China and the US. 

India

With India, the Dahal-led government has adopted the approach of focusing more on development and economic partnership. Foreign Ministry officials say the signing of power trade agreement with India to export up to 10,000 MW electricity is a key remarkable development in bilateral relations. The agreement, they say, has also created a conducive environment for foreign investment in Nepal’s hydropower sector. Another significant development linked to this deal is India’s nod to allow Nepal to export 40 MW electricity to Bangladesh, which is likely to be operationalized from July this year. After a long time, the dream of regional power has been materialized.

Similarly, officials claim several connectivity and other bilateral projects are moving ahead, and the government has been able to secure Indian support for survivors of the Jajarkot earthquake. India has also increased the grant amount by InRs 1bn to be provided to Nepal under the fiscal year 2024-25. In the new provision, India will be providing Nepal with a total grant of InRs 6.50bn.  

As far as the long-standing issues such as border disputes and the report of Eminent Persons’ Group is concerned, it seems that the present government has adopted a different approach. The Dahal government is unlikely to push India to receive the EPG report. 

As for the Treaty of Peace and Friendship 1950, according to a top diplomat, the present government is of the view that there should be an all-party consensus within the country before approaching India. On border disputes, the government reckons that both political and bureaucratic levels should work simultaneously. 

Speaking at a program a few days back, Foreign Minister Saud said that border disputes between Nepal and India should be resolved on the basis of political consensus. “We have a joint technical committee in this regard. The committee should be activated after which the leadership of both countries should resolve this problem diplomatically based on the facts,” he said. 

China

After the formation of the Dahal-led government, bilateral engagement and exchanges between Nepal and China have increased notably. China seems serious about expediting the works of some projects, such as Ring Road expansion and maintenance of Araniko Highway, among others. Similarly, the two sides have started the paperwork to expedite the construction of cross-border transmission lines while preparations have begun to construct an agro industrial park in Chitwan and Gorkha. 

Over the past few months, both air and road connectivity between the two countries have widened. But the current government still faces the criticism of giving less priority to China, particularly concerning the Belt and Road Initiative (BRI) projects. Beijing has been pressing Kathmandu to sign the BRI implementation plan at the earliest, but the Dahal-led government has not shown much enthusiasm for it.  

A few days back, Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha said at an event that Nepal and China were working to finalize the BRI implementation plan. But the Ministry of Foreign Affairs has made it clear that Nepal will not take loans from China to realize the BRI projects.

 With big projects, such as those envisioned by the BRI, showing no signs of progressing, China has of late directed its focus on small projects in Nepal, ones that could immediately bring changes in people’s life. A senior official at the Prime Minister’s Office says as the Nepali Congress has been dictating the conduct of foreign policy, there has been little progress in regard to bilateral partnership with China.

While Beijing is pleased with the position taken by Prime Minister Dahal and the senior leaders of major parties against the independence of Taiwan, China still seems wary of the growing influence of Western countries in Nepal.

US

Foreign Minister Saud says there has been substantial improvement in the relationship with the US. For some years after 2018, the Nepal-US ties mainly revolved around the issue of ratifying the Millennium Challenge Corporation (MCC) through parliament. The much controversial issue has now been resolved following the parliamentary endorsement of the MCC Nepal Compact, but some technical details are still there. 

In the MCC, rising cost of the proposed projects is one of the key issues which needs to be resolved through bilateral talks and negotiations. Nepal has already made it clear to the American side that it is not in a position of investing more money in the projects.  

In the past, the US’ Indo-Pacific Strategy (IPS), seen by many as a tool to curb China’s growing influence, had also impacted the Nepal-US relationship. But the American side has managed to downplay the IPS concerns, though some of its components are under implementation. 

During his visit to the US, Foreign Minister Saud held talks with his American counterpart Antony Blinken and other high-level government officials. Along with increasing the volume of bilateral assistance, American private companies have shown interest to invest in Nepal’s tourism, agriculture, medical and other areas, and they are seeking an appropriate environment. In 2023, there was a series of visits from the American side. In the meeting with Saud, Blinken said Nepal is a valued partner in the Indo-Pacific region which has given a clear message that America accords high priority to its relationship with Nepal.

A new trek route connecting bordering areas in India and China has been identified and upgraded. The Earthbound Expedition Company scouted the new trek route connecting Khunuwa in Kapilvastu district with Rasuwagadhi in Rasuwa district.

The expedition company, organizing a press conference here last Monday, launched the new trek route that links the flatland area of the country with the mountainous region.

Expedition company's President Rajan Simkhadha shared that they researched and found out the new trek route with an objective to introduce Nepal's Terai terrain along with hilly and mountainous terrain. "Conventionally, the trek route paints the picture of the mountainous region. Hence, we have identified a new trek route which encompasses areas from Terai to mountainous areas that enables us to understand religion, culture, traditions and condition of the tourist destinations."

The route includes places like Taulihawa, Kapilvastu, Kudun, Jagadishpur Taal, Butwal, Masayam Hatiya, Tansen, Arya Bhangyang, Keladighat, Ghiring, Rishing, Damauli, Bandipur, Gorkha, Taribesi, Katunje, Melang, Salme, Gonga, Singlapas, Pangsing Pas, Somdang, Chilime and Kerung check point.

The trek route whose first stop is situated at 60 meters above the sea level ends at the last stop at 4,080 meters, it was shared.

Famed American hiker Mike Obester was also part of the team who identified the new trek route who, during the press meet, confessed that there were many places to visit in Nepal which had hugely fascinated him.

The team discovering the new route shared that the newly explored route was 440-km and it took them 17 days to finish the trek on this route.

A 20 to 25 days of package could be made for the new trek. Simkhada believed that the new route could contribute to the rural economy of Nepal for it covers nine districts of 3 provinces of the country.

A meeting of the Nepal-India Inter-Governmental Sub-Committee (IGSC) on Trade, Transit and Cooperation to Control Unauthorized Trade concluded in Kathmandu.

The two-day meeting that ran on January 12 and 13 aimed to promote bilateral cooperation and trade relations and transit by preventing unauthorized trade. Joint Secretary at the Ministry of Industry, Commerce and Supplies, Ram Chandra Tiwari headed the Nepali delegation to the meeting that was attended by representatives from various ministries and departments.

Joint Secretary Vipul Bansal of the Ministry of Commerce and Industry, India led the Indian delegation to the meeting which witnessed the participation of representatives of Embassy of India in Kathmandu and senior government officials from India.

The meeting discussed various agendas while also exploring ways for finding a mutual market access for medicinal and ayurvedic goods.

The Indian side highlighted the significance of the Paris Convention to promote foreign direct investment. The meeting stressed on the need of strengthening unobstructed trans-national connectivity between Nepal and India including the establishment of an integrated customs point and the construction of a railway service between the two countries.

India remains a major trading partner of Nepal. The meeting is expected to contribute to further enhancing the economic and business relations between the two countries.  

Prime Minister Pushpa Kamal Dahal informed the Law, Justice and Human Rights Committee of the House of Representatives that India has signed an agreement to purchase 10, 000 megawatt of electricity from Nepal in 10 years.

Though India has agreed to procure electricity from Nepal, it has reservations pertaining to the purchase of power produced by the Chinese companies.

During the meeting of the parliamentary committee on Wednesday, Prime Minister Dahal said that attempts are being made to cajole India to buy electricity produced by the Chinese companies in Nepal.

The Prime Minister said that India’s External Affairs Minister S Jaishankar during his visit to Nepal a few days ago had signed a long-term power agreement.

“No agreement has been made to take the investment of India only. There is a provision that any country can produce electricity in Nepal. India has signed an agreement to purchase 10, 000 megawatt of electricity from Nepal in 10 years,” PM Dahal said, adding, “The Indian government, however, is reluctant to purchase electricity produced by Chinese companies in Nepal.”

Prime Minister Dahal said that attempts are being made to persuade India to buy the electricity from the hydropower projects invested by the Chinese company.

Coronavirus infection is found among the Nepalis returning home from different cities of India.

Coronavirus test has been made mandatory at Nepal-India bordering areas after a new variant of coronavirus (JN.1) was detected in India.

Chief of the Health Desk set up at Gauriphanta checkpoint, Ganesh Saud, said that coronavirus infection was found in 10 people returned from India so far.

"We have been conducting antigen tests among India-returnees and 10 cases of coronavirus have been recorded so far," he mentioned.

Saud shared that those found infected with coronavirus have been suggested to stay in home isolation.

Hundreds of Nepalis are returning home every day via Gauriphanta checkpoint from different places of India.

Samples were collected and sent to Kathmandu to confirm the variant of corona two weeks ago, but its report has not been received yet, added the Health Desk Chief. 

However, coronavirus has not been confirmed on Nepalis returning home using Gaddachauki checkpoint of Kanchanpur so far, according to the District Health Office, Kanchanpur.

Nepal and India inked a long-term agreement on electricity trade at a secretary-level meeting held in the presence of Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet, on Thursday.

Secretary at the Ministry of Energy, Water Resources and Irrigation Gopal Sigdel and India's Energy Secretary Pankaj Agrawal inked the deal during the two-day visit of India’s Foreign Minister Subrahmanyam Jaishankar, in line with an understanding reached between Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi during the former’s visit to India on May 31-June 3 for the export of 10,000 MW from Nepal in the next 10 years.

This agreement has made way for private sectors as well as government entities from Nepal and India to engage in power trade through short-term, medium-term and long-term contracts.  Notably, the government of Nepal has prepared an ambitious energy development strategy, with the objective of generating 28,000 MW in the next 12 years, of which it plans to export 15,000 MW to India and other countries. 

Nepal’s private sector has welcomed the energy deal with India.  Earlier in the day, a delegation under India’s Energy Secretary Agrawal paid a courtesy call on Energy Minister Basnet.  On the occasion, Minister Basnet expressed hope that the agreement on power trade will enhance Nepal-India relations further. 

Meanwhile,  the seventh meeting of Nepal-India Joint Commission concluded by reviewing the entire gamut of bilateral partnership. Minister for Foreign Affairs NP Saud and his Indian counterpart Subrahmanyam Jaishankar co-chaired the meeting, which discussed trade, connectivity, development projects.  

Jaishankar held separate meetings with Prime Minister Pushpa Kamal Dahal, President Ram Chandra Paudel and other political leaders. After the meeting with PM Dahal, Jaishankar recalled the former’s “successful visit to India in June 2023 which has imparted a new momentum to our ties.”

Jaishankar said they discussed the “follow-up, including through Joint Commission”, adding that India-Nepal friendship is indeed unique and is moving from strength to strength. 

The Ministry of Foreign Affairs said various aspects of Nepal-India relations were discussed under the thematic areas of economic relations, connectivity, trade and transit, power and water resources, education and culture and political matters. 

Key agreements

• Long-term power trade 
• Cooperation in renewable every development 
• Mutual satellite 
• Handover of the fifth tranche of the post-Jajarkot earthquake relief supply 
• Inauguration of three cross-border transmission lines 
• Agreement on high-impact community development project 
• Agreement between Nepal Academy of Science and Technology and NewSpace India Limited 

Nepal and India on Thursday signed a landmark agreement on bilateral energy cooperation, allowing seamless export of Nepal’s energy to the Indian market. As per the agreement, India will purchase up to 10,000 MW electricity in the next 10 years. 

The agreement is a game-changer for Nepal’s hydropower projects because it has ensured market access for Nepal’s electricity. Earlier, international investors were reluctant to invest in Nepal’s hydropower sector due to skepticism regarding market access. 

Similarly, India, Nepal and Bangladesh are working to sign a trilateral energy cooperation which paves the way for Nepal to sell electricity in Bangladesh. The energy-hungry South Asian country is struggling to fulfill its electricity demand. It has reached out to neighboring countries including Nepal with the proposition of importing electricity. 

The agreement makes way for the Indian as well as international investors to invest in Nepal’s hydropower sector. Still, there are concerns over the electricity produced by the Chinese companies. India has refused to purchase electricity produced by Chinese companies or from projects with Chinese components.

The government needs to create a conducive environment for hydropower companies to speed up the construction of projects. 

Hydropower investors often complain of local governments and residents obstructing work at project sites under various pretexts and demands. The federal government should take immediate measures to resolve the problems facing private companies. 

There is a long-list of demands from private investors which should be resolved without any delay. Hydropower is one of the biggest assets of Nepal. The government and its concerned agencies should be serious about dealing with bureaucratic and other hurdles that have been crippling this sector. 

At the same time, India should seriously consider the issues that Nepal has been raising concerning the electricity trade between the two countries.

India is to provide Rs 10 billion in financial aid to Nepal for the reconstruction of structures damaged in the earthquake in Jajarkot and Rukum West.

During a meeting of the Nepal-India Joint Commission organized in Kathmandu on Thursday, it was agreed that India would provide Rs 10 billion in assistance for the reconstruction of quake-damaged structures in Jajarkot and Rukum West.

Foreign Ministry spokesperson Amrit Bahadur Rai said that a four-point agreement was signed on the occasion.

Among which, Nepal would export 10,000 megawatt electricity to India in 10 years and the satellite made by Nepal would be launched with the help of India.

Spokesperson Rai said that three 132 KV international transmission lines were inaugurated in the meeting.

Nepal and India have inked a long-term agreement on electricity today.  Secretaries of both countries signed on the document in the presence of Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet.

With the signing of the agreement, the bilateral understanding to export 10,000 megawatts of electricity from Nepal to India in the next ten years has been materialized.

Secretary at the Ministry of Energy, Water Resources and Irrigation, Gopal Sigdel and India's Energy Secretary Pankaj Agrawal signed on the agreement paper on behalf of their respective sides.

The bilateral understanding on electricity export was reached during Prime Minister Pushpa Kamal Dahal's visit to India from 31 May to 3 June 2023.

During the visit, Indian Prime Minister Narendra Modi expressed India's commitment to long-term electricity purchase from Nepal, and both nations reached a consensus on this matter.

The Federal Council of Ministers of India has already endorsed the Memorandum of Understanding (MoU) in this regard. The agreement was signed during the two-day visit of India's External Affairs Minister Dr Subrahmanyam Jaishankar, which commenced today.

Following this agreement, various government and private entities in India will engage in power trade with Nepal through short-term, medium-term, and long-term contracts. Private sectors in Nepal can also participate in the import and export of electricity after completing the necessary procedures.

In a press conference organized in the course of Prime Minister Dahal's visit to India, prime ministers of both countries had commented that the issue of power export was historic and significant.

The government has already prepared an energy development strategy with an objective of producing 28,000 MW electricity in the next 12 years.

Of 28,000 MW power, a target has been set to export 15,000 MW electricity to different countries including India.

The private sector welcomed the agreement, citing doors for development of Nepal's energy sector would be opened after the agreement.

The government has set a target to bring quality change in the development of the energy sector by taking the private sector together.

Earlier, a delegation led by Indian Energy Secretary Agrawal paid a courtesy call on Energy Minister Basnet.

On the occasion, expressing happiness over the beginning of meaningful cooperation in the energy sector between the two countries, Energy Minister Basnet pointed out the need of taking it to further conclusion.

He shared that the agreement regarding exporting 10,000 MW electricity in next 10 years would take the relations between the two countries to a new height.

The energy minister urged to accelerate other projects and complete them on slated time, expecting Indian investment in large projects.