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Modi, Prachanda announce 10-year power trade deal between India & Nepal, sign 7 agreements – EQ Mag

Modi, Prachanda announce 10-year power trade deal between India & Nepal, sign 7 agreements – EQ Mag


Export of hydropower to Bangladesh through India will commence soon, says Nepal PM. Prachanda also called for resolving the border dispute through diplomatic channels.

New Delhi : Prime Minister Narendra Modi and his Nepal counterpart Pushpa Kamal Dahal ‘Prachanda’ announced the completion of a long-term power trade deal, as well as the signing of seven documents in areas of trade, energy, infrastructure among others.

“Long-term power trade agreement has been established between India and Nepal today. This will give strength to the power sector of our countries,” PM Modi said in a joint briefing at the Hyderabad House Thursday.

Prachanda, who is on an official four-day visit to India since becoming the prime minister last December, confirmed that India will import 10,000 MW from his country over the next 10 years.

Export of hydropower from Nepal to Bangladesh through India would commence soon, he said. “Up to 60 MW of power from Nepal to Bangladesh through India will commence soon, and the three countries will work out an agreement for this,” Prachanda said.

India and Nepal’s energy ties are a key aspect of the bilateral partnership. One of the key agreements signed by the two leaders is a project development agreement for the 669 MW Lower Arun Hydro Project, which received approval from Nepal’s Investment Board days before Prachanda’s visit to India.

India is also developing the mega 900 MW Arun-III hydroelectric project in the neighbouring country, and has a 490 MW Arun-4 hydro electric project in the pipeline as well.

In his remarks, Prachanda also touched upon the border dispute between India and Nepal. “PM Modi and I discussed the boundary matter. I urged Modi to resolve the boundary matter through the established bilateral diplomatic mechanism,” he said.

In November 2019, a border disputed flared up between India and Nepal over the Kalapani territory, located in Uttarakhand’s Pithoragarh district. India had brought out a revised political map showing the Union Territories of Jammu and Kashmir and Ladakh which Nepal opposed.

The Nepal PM also called on India to lift “anti-dumping” duty on Nepalese jute products.

Expansion of petroleum pipeline

India and Nepal exchanged seven documents including the inauguration of railway facilities, expansion of a petroleum pipeline, and digital payments. The first was a renewal of the India-Nepal Transit Treaty, 1992.

Nepal can use new rail routes as well as inland waterways under the revised agreement, said PM Modi.

Modi and his Nepal counterpart also announced the extension of the Motihari-Amlekhgunj to Chitwan as well as construction of a new pipeline along with storage terminals between Siliguri and Jhapa in eastern Nepal.

Prachanda and Modi virtually flagged off checkposts at Rupaidiha in India and Nepalgunj in Nepal.

The two leaders also announced that India would help build a fertiliser plant in Nepal.

In the field of education, an MoU was signed between Institute of Foreign Affairs and Sushma Swaraj Institute of Foreign Service.

Source: PTI
Anand Gupta Editor - EQ Int'l Media Network