India extended a $150-million credit line to Nepal on Friday, an economy which is still struggling to recover more than a year after a devastating quake. The 7.8-magnitude quake in April 2015 left about 9,000 people dead and led to losses worth billions of rupees. Prime Minister Modi held an “extensive and productive dialogue” with the Nepalese PM after which the two sides inked three pacts including one on India extending $750 million for Nepal’s post natural disaster reconstruction.
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The Nepalese Prime Minister, who arrived here on Thursday on a four-day visit, has chosen India for his first overseas tour – lending significance to the ties.
India and Nepal are likely to discuss the Railway project. Prachanda also invited Modi and President Pranab Mukherjee to visit Nepal soon.
On Nepal’s ties with China, he said Nepal wants a “balanced relationship” with both India and China.
He said he had held useful exchanges on the various projects and programmes that have the potential to bring about tangible results to the people of Nepal and India. Nepal had also accused India for causing the blockade.
The Madhesi parties had led a six month-long agitation past year, mainly to protest against the seven-province federal model enshrined in the Constitution.
Addressing Nepal’s parliament days before the trip, Dahal said he would nudge India to speed up construction of India-funded infrastructure projects that have stalled and push for implementation of past agreements.
Prachanda is also scheduled to meet Nepal citizens based in India and attend a reception at the Nepalese Embassy in New Delhi.
The two countries also made a decision to continue cooperation in areas of defence and security.
Prachanda’s visit comes within seven months of the visit of their former Prime Minister KP Oli, who was largely seen in India as upsetting the ties between both the countries even as he faced massive agitation from the local Indian-origin Madhesis in inhabiting in Nepal’s terai region.
“As immediate neighbours & close friendly nations, peace, stability, &eco prosperity of Nepal is our shared objective”, said the Indian PM tweeted MEA. He appreciated his decision of selecting India for his first visit overseas as Prime Minister.
Another agreement was signed on the first amendatory dollar credit line for post-earthquake reconstruction projects in Nepal.
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Mandi MP Ram Swaroop Sharma also accompanied the Prime Minister to the project as being local MP.
