India-Nepal sign crucial agreements in multiple domains

Prime Minister Narendra Modi and his Nepalese counterpart Sher Bahadur Deuba met in New Delhi with the two countries launching multiple initiatives as well as signing four crucial agreements in multiple domains.

The Agreements:

The crucial agreements on multiple domains signed between the two countries include:

1. Nepal is the 105th Nation to sign the Framework Agreement of the International Solar Alliance (ISA).

2. Supply of petroleum products.

3. Sharing Technical expertise between Nepal Oil Corporation and Indian Oil Corporation.

4. Technical cooperation in railways

Other Developments

• The two PM’s inaugurated the Jayanagar (Bihar)-Kurtha rail Link that is supposed to initiate rail connectivity to Janakpur (Nepal).

• The prime ministers jointly inaugurated the 90km long 132 kVDC Solu Corridor Transmission Line and substation project that was built through the Line of Credit extended by India.

• India launched the RuPay card in Nepal which makes Nepal the 4th Nation, with the domestic variant of the RuPay card to be functional on about 1400 point of scale machines in Nepal.

• There was a discussion on the progress of 132 health facilities across 10 districts in Nepal under the GoI grant.

• There was a discussion on flood control programs and border disputes between the two nations

Solu Corridor:

• It is a 132 kV Double Circuit Transmission Line Project.

• It is one of the major projects in Nepal undertaken under the Government of India Line of Credit.

• The 90km double circuit line connects the remote districts of Northeastern Nepal with Nepal’s national electricity grid.

• The transmission line will produce electricity from existing and upcoming hydro projects and will supply power in rural areas.

 India-Nepal relations:

• India is Nepal’s largest trading partner. Nepal holds a special significance in India’s foreign policy.

• Nepal is an important neighbor and  also shares geographic, cultural, and economic trade ties. Both the countries share an open border and uncontrolled movement of tourists.

• Both the countries share efficient connectivity despite the fact that Nepal is surrounded by India from three sides.

• The perennial river systems of India originate from Nepal and serve as hydropower potential for the state.

• India and Nepal together have called for several initiatives to promote art and culture, and education in both countries.

• India is the biggest contributor of Humanitarian Assistance to Nepal as it lies in an ecologically fragile zone that is prone to Earthquakes, floods.

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