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Nepal-India Relations
Nepal and India are bound together by age-old ties of history, culture, tradition and religion. Our relations are deep and extensive pervading many aspects of our life. There are time-honoured traditions and socio-cultural ethos common to both our peoples. A firm commitment to the principle of peaceful coexistence and sovereign equality of the states has characterized our relations. Both our countries share commonality of approach in many outstanding international issues. With the establishment of SAARC, some more areas have been added for self-reliance within the region. Our main thrust now has been to strengthen and broaden our neighbourly relations based on mutual understanding of each other's aspirations and interests.
A. Exchange of Visits
The exchange of visits by the leaders of the two countries at different levels have helped to bring the peoples of our two countries much closer. The visits at the apex-level have served to place Nepal's age-old and multi-dimensional relations of friendship and cooperation with India on a more mature and pragmatic footing.
During the interim Government period, Prime Minister Mr. K.P. Bhattarai visited India from 8 to 10 June 1990 at the invitation of Prime Minister V. P. Singh of India. The Joint Communiqué issued at the end of this visit reaffirmed the two Governments' adherence to and respect for the principles of sovereign equality, territorial integrity, national independence, non-use of force, non-interference in each other's internal affairs and peaceful settlement of all disputes. During the visit, the impasse on Nepal-India trade and transit was broken by restoring the status quo ante before the expiry of the relevant treaties.
Prime Minister Girija Prasad Koirala paid an official visit to India from 5 to 10 December 1991 at the invitation of Prime Minister P.V. Narasimha Rao. A new Indo-Nepal Treaty of Trade, valid for five years and renewable, was concluded. Likewise, a separate Treaty of Transit valid for 7 years was also signed on that occasion.
Prime Minister Man Mohan Adhikari paid an official visit to India at the invitation of Prime Minister P.V. Narasimha Rao from 10 to 14 April 1995. During the visit the two Prime Ministers held extensive talks on wide ranging issues existing between Nepal and India.
Prime Minister Sher Bahadur Deuba paid an official goodwill visit to India from 11 to 17 February 1996 at the invitation of Prime Minister P.V. Narasimha Rao. During the visit the two Prime Ministers signed a landmark and historic treaty concerning Integrated Development of the Mahakali River.
Prime Minister Girija Prasad Koirala paid an official goodwill visit to India from 31 July to 6 August 2000 at the friendly invitation of Prime Minister Atal Behari Vajpayee. The visit helped to clear the atmosphere and restore the relations of the two countries which were adversely affected in the wake of events such as the hijacking of IC 814, the Rhitik Roshan incident etc.
Their Majesties King Gyanendra Bir Bikram Shah Dev and Queen Komal Rajya Laxmi Devi Shah paid a State Visit to India at the invitation of President K. R. Narayanan in June 2002. This was the first visit abroad by Their Majesties since accession to the throne in June 2001.
The Visit of Their Majesties the King and Queen to India in March 2003 gave a further fillip to our quest for greater mutual understanding and consolidation of bilateral relations.
Prime Minister Sher Bahadur Deuba paid an official goodwill visit to India from 20 to 25 March 2002, for the second time in six years. During the visit, India has greed to undertake a feasibility study of the East West Railway in Nepal and to extend cooperation in establishing a Technology Institute in the Far Western Development Region of Nepal.
Prime Minster Sher Bahadur Deuba paid an official working visit to India from September 8 to 12, 2004 at the invitation of Prime Minister of India Dr. Manmohan Singh.
During the corresponding period, quite a number of visits have taken place from the Indian side also.
The President of India H.E. Mr. Neelam Sanjiva Reddy paid an official visit to Nepal in 1981. President Giani Zail Singh visited Nepal in July 1986. Mr. K. R. Narayanan, President of India and Madame Narayanan paid a State Visit to Nepal from 28 to 30 May 1998. The President of India addressed a meeting of the Nepal Council of World Affairs and was awarded an honorary degree of Doctor of Literature by the Tribhuvan University. The President was given a civic reception and met with intellectuals and eminent persons of Nepal. The President's visit was characterized as vision-setting visit to a friendly neighbour by the Indian side and is taken to have served its purpose of not only consolidating the existing friendship between the two countries but also in putting forward a vision of a more mature and mutually beneficial relations in the years ahead.
The Prime Minister of India, Mr. Chandra Shekhar visited Nepal on 13-15 February 1991. During this visit, the two Prime Ministers agreed, inter alia, to form a High-level Task Force for the purpose of preparing a program of cooperation between the two countries under the umbrella of Nepal-India Joint Commission.
Prime Minister P.V. Narasimha Rao paid an official goodwill visit to Nepal from 19 to 21 October 1992 at the invitation of Prime Minister Girija Prasad Koirala. The B. P. Koirala Nepal-India Foundation was inaugurated by the two Prime Ministers on 21 October 1992. The Foundation provides an institutional framework for promoting academic, cultural and technical exchanges and cooperation between India and Nepal, the specific thrust areas being agricultural research, science and technology, health, technical training, developmental and area studies and women's studies. The activities funded by the BPKIF are financed through revenues/interests generated from a Trust Fund which has been set up principally through grants made available by the governments of the two countries. Both the secretariats maintain the Trust Fund contributed by their respective Governments. Currently Government of Nepal has contributed IRs.3 corore for the Trust Fund and GOI has contributed IRs. 8 corore. The Foundation also accepts unconditional grants from other agencies, both public and private. Its focus is on higher studies, research, in-service training of teachers, research scholars, technocrats etc. During the visit, the two countries had also reached understandings for accelerating joint ventures and investigating and preparing reports on a number of projects on flood protection, power exchange, water resources etc.
Prime Minister I. K. Gujral visited Nepal from 5 to 7 June 1997. Prime Minister Lokendra Bahadur Chand and Prime Minster I. K. Gujral held extensive discussions on all aspects of bilateral relations and the status of Nepal-India cooperation was also reviewed in detail. The Joint Press Statement issued at the end of the visit set a time bound calendar for examination and discussion of all major issues of bilateral interests including the opening of the Kakarbhitta-Phulbari-Banglaband transit route.
Prime Minister Atal Behari Vajpayee visited Kathmandu in January 2002 to attend the 11th SAARC Summit meeting.
Other Important Visits
- Union Minister for Health and Family Welfare Mr. B. Shankarananda paid an official visit to Nepal from 18-20 October 1994. During the visit he attended the foundation laying ceremony of Academy and 350 Bed Hospital Complex of the B.P. Koirala Institute of Health Science in Dharan to be constructed jointly by the governments of the two countries.
- India's then Minister for External Affairs Mr. Pranab Mukharjee paid a 3 day official goodwill visit to Nepal from January 26 to 29, 1996. During his visit, extensive discussions were held regarding the development Mahakali river including Tanakpur issues between the high officials of the two Governments. And the two Foreign Ministers initialed a treaty for the 'Integrated Development of Mahakali River including Pancheswor and Sarada Barrage'.
- Foreign Minister Dr. Prakash Chandra Lohani paid an official visit to India in August 1996. The major highlight of the visit was the agreement to set up a Joint Working Group to evolve modalities to monitor movement across the Nepal-India border.
- Foreign Minster Mr. Kamal Thapa visited India from 10-14 September 1997 and held extensive discussion on all issues of bilateral interest with Prime Minister Gujral. At the meeting with Prime Minister Gujral as well as at the official meeting at the Ministry of External Affairs, Foreign Minister Thapa put forward Nepal's proposal for a new Treaty of Friendship and Cooperation with India that would reflect the present realities while ensuring continuation of the traditional bonds of friendship and cooperation between Nepal and India.
- Indian Minister for Commerce Mr. Ramakrishna Hegde paid an official visit to Nepal from January 5-6, 1999. During the visit the renewed and modified Treaty of Transit was signed on 5 January 1999 in Kathmandu by Commerce Ministers Mr. Purna Bahadur Khadka and Mr. Ramakrishna Hegde.
- Foreign Minister Dr. Ram Sharan Mahat paid a consultation visit to India from 17-19 August 1999 in connection with the 11th SAARC summit which was scheduled to be held in Kathmandu in November 1999.
- Foreign Minister Chakra Prasad Bastola paid an official visit to India on 7-10 May 2000, at a time when Nepal-India relations were marked by mutual suspicion in the wake of IC 814 hijacking and the Rhitik Roshan incident. The visit helped to clear the air in bilateral relations.
- After the Royal Palace incident of 1 June 2001, Indian External Affairs Minister Mr. Jaswant Singh came on a goodwill visit to Nepal on 18-19 August 2001.
- Indian External Affairs Minister Mr. K Natwar Singh paid an official visit to Nepal in June 2004 as the first of his foreign visit after the UPA Government took over the helm of the Government in India.
- Nepalese Foreign Affairs Ramesh Nath Pandey paid working visit to India from March 7 to 9, 2005.
- Indian Minister of State for External Affairs Mr. Rao Inderjit Singh visited Nepal from July 21 to 23, 2005 in connection with garnering support of Nepal on India's bid for permanent seat in the expanded UN Security Council. This was the first high-level visit to Nepal from India after the February 1, 2005.
B. Nepal-India Cooperation:
India has been extending cooperation to Nepal in diverse areas for more than fifty years. Following is a glimpse of the on-going Indian aided projects as well as those decided to be taken up by the Government of India after the 5th meeting of the High Level Task Force (HLTF). The HLTF periodically meets to identify and prioritize such cooperation projects. The 5th meeting of the HLTF was held in Kathmandu from 5-7 June 2000. The Chief Secretary of Nepal and Principal Secretary to the Prime Minister of India lead the respective delegations to the HLTF.
- BP Koirala Institute of Health Sciences, Dharan:
It was established on 8 January 1998 under a bilateral agreement between Nepal and India. Since then, consecutive batches of MBBS courses are being conducted smoothly. The Institute has also started the B. Sc. Nursing course. The Government of India handed over the BPKIHS to Nepal during the visit of Indian External Affairs Minister Mr. Jaswant Singh to Nepal in September 1999. During the fifth HLTF meeting held in Kathmandu on 5-7 June 2000, the Indian side confirmed that the cooperation of the Government of India would continue, including the faculty support to the BPKIHS, up to the year 2009.
- Bir Hospital Expansion Project:
Prime Minister I.K. Gujral laid the foundation stone of Trauma and Emergency Centre during his visit to Nepal in June 1997. An expert team from India visited Kathmandu and held discussions with the concerned Nepalese authorities on 1-3 June 2000 on the preparation of the Detailed Project Report of the proposed Emergency and Trauma Centre. Another expert level meeting was held in Kathmandu on 5-6 October 2001. A MOU on this project has been signed between the two countries and DPR of the same has been completed. The construction works of the project was to be started from the beginning of October 2004 and completed by 2007.
- Paropakar Indra Rajya Laxmi Maternity Hospital:
The work on the setting up of the Maternal and Neo-Natal Intensive Care Units at Paropakar Indra Rajya Laxmi Maternity Hospital including training of the personnel has been completed and the GOI has agreed to continue its association with this hospital.
- Construction of 22 bridges on Kohalpur-Mahakali Highway Sector:
The construction work of the 22 bridges on Kohalpur-Mahakali Highway sector under Indian cooperation has been completed and already handed over to Nepal in 2001.
- Raxaul-Sirsiya Broad-Gauge Rail Link Project:
The Construction of Inland Clearance Depot (ICD) at Sirsiya, Birgunj, in cooperation with the World Bank, under 'Nepal Multimodal Transit and Trade Facilitation Project', has already been completed. A 5.3 km. rail line from Raxaul to Sirsiya (ICD) has also been laid under Indian cooperation. Nepal and India have concluded Rail Services Agreement on May 21, 2004 for the operation of the ICD Birgunj. Accordingly, the ICD has been operated since July 16, 2004 for the third country transit traffic. Bilateral cargo trade has also been operationalized from ICD Birgunj since March 2006.
- Greater Janakpur Development Project:
Yatri Niwas: A traveler's rest house (Yatri Niwas) was constructed at a cost of Rs.10 million. The facility was handed over to the Greater Janakpur Development Project after its completion.
- (a) Rangeli-Bhadrapur Road, (b) Chatara-Birpur Road, and (c) Janakpur Outer Ring Road
A consultant would be appointed to draw up a plan of action and assess the viability of the development of infrastructure, including transportation and communication links at the adjoining border districts - the Bhadrapur-Rangeli-Biratnagar Road, Birpur-Chatara road, and the Janakpur outer ring road, subject to the availability of resources.
- Mahendranagar-Tanakpur Link Road Project:
The DPR of the project has been finalized. Land acquisition by the Government of Nepal is in progress. Discussions on the draft Letter of Exchange were held in Kathmandu in April 2002, and it is now in the process of being finalized. The construction work would start after the Letter of Exchange is signed between the two Governments.
- Embankments along Bagmati, Kamala, Khando and Lal Bakaiya Rivers:
The construction work on the extension of the right embankment on the Lalbakaiya river in Nepal has commenced and that the construction of embankments on Kamala, Bagmati and Khando rivers would be finalized thereafter. It was agreed that the proposed Nepal-India Task Force on Flood Control and Flood Forecasting would be constituted shortly to review cooperation in this area and recommend short term and long term measures. The first meeting of the Nepal-India Committee on Flood Forecasting was held in New Delhi on 26-27 April 2001. The Committee held its second meeting in Kathmandu from 6 to 8 May 2002.
- Implementation of the provisions of the Treaty on Integrated Development of the Mahakali Treaty:
So far, 18 meetings of the Joint Expert Group have been held for the purpose of preparing Detailed Project Report of the Pancheswor Multipurpose Project. The DPR is being prepared. The JEG is scheduled to meet soon in Kathmandu.
- Cooperation under the Umbrella Agreement
As per the agreement signed between the two governments on 7 November 2003, the Government of India has been providing financial assistance for the implementation of more than 60 small development projects in different parts of the country. Such development projects range from construction of school building to provision of ambulance to the hospitals to implementation of drinking water projects.
Proposals put forward at the Fifth HLTF Meeting (June 5-7, 2000):
- Infrastructure Development:
To improve the physical facilities and infrastructure development at important border crossings - Birgung/Raxaul, Bhairahawa/Sunauli and Biratnagar/Jogbani, a consultant would be appointed shortly to prepare a blue print in consultation with the concerned authorities of two Governments. The Government of India has appointed M/s RITES as consultant for undertaking a study on this project.
A Memorandum of Understanding (MoU) between Nepal and India has been signed in Kathmandu on August 3, 2005 to provide technical and financial support for the development of infrastructures at four border check points (Biratnagar, Birgunj, Bhairahawa and Nepalgunj) along Nepal-India border. Infrastructure development at these points includes link roads, administrative blocks for custom offices, laboratories, staff quarters, security posts, quarantine check posts and other facilities. It is estimated that Rs. 5060 million will be required for the development of infrastructures in these four border points.
The Government of India has supplied 2 diesel engines and 12 coaches for the narrow-gauge Janakpur-Jayanagar Railway. The request to convert the narrow-gauge railway to broad gauge is still pending. At the fifth HLTF meeting, India has agreed to see its economic viability for the conversion of the Janakpur-Jayanagar Railway and extension of Janakpur broad-gauge Rail Route to Bardibas.
- Pilot Projects in Nepal:
Nepal and India agreed to launch jointly developed pilot projects in Nepal in the field of rural and community development. Two districts - Doti and Nawalparasi - have been selected. The National Planning Commission is handling the matter.
- Run-of-the-river Hydropower project:
India has proposed to jointly set up a small/medium sized run-of-the-river hydropower project during the fifth HLTF meeting. An Indian team visited Nepal in February 2001 and held preliminary discussions with the Nepalese authorities in this regard. The two sides are yet to moot the projects.
- Dairy Development:
The Indian side has agreed to cooperate in developing dairy industry in Nepal with the involvement of the National Dairy Development Boards of Nepal and India.
- Technology Institute
India has agreed to extend cooperation in establishing a technology institute at the Far Western Development Region of Nepal. Both sides are yet to identify the appropriate location of the proposed institute.
- East-West Railway Project:
Indian has agreed to undertake a feasibility study of the East West Railway project. The project is still at the inception phase. Detailed studies and preparation of the feasibility studies is yet to be done.
- East West Highway Optical Fibre Project
India provided grant assistance for the laying of optical fiber cable network and its associated technical structures along the East West Highway in accordance with the technical scope and specifications as mutually agreed. First phase of the project has been completed with laying of optical-fiber from Jhapa to Kohalpur section of east-west highway and has already been inaugurated in 2005. Nepal has asked India to consider support for the second phase of the project to connect the network in the remaining section of the east west highway.
During the official visit of Prime Minister Girija Prasad Koirala to India in August 2000, the recommendations of the HLTF were endorsed and directions given to expeditiously implement the following new projects:
- improving infrastructure and physical facilities at important border customs stations;
- development of infrastructure including transportation and communications links in the adjoining districts of Nepal and India;
- launching a rural and community development pilot project;
- setting up a small/medium hydropower project in Nepal;
- setting up an EPZ near the ICD in Birgunj;
- cooperation in dairy development, and
- cooperation in establishing a Technology Institute in Nepal with information technology as one of its key components.
During Prime Minster Sher Bahadur Deuba's official working visit to India from September 8 to 12, 2004, the following agreements were concluded:
- Agreement between Nepal Oil Corporation and Indian Oil Corporation was reached for a joint venture regarding construction of an oil pipeline between Amlekhgunj (Nepal) and Raxual (India).
- Agreement between Nepal Bureau of Standards and Metrology and Bureau of Indian Standards,
- Agreement on Cooperation in the fields of Culture and Sports,
- Memorandum of Understanding on Cooperation in the field of Weather Forecasting,
Also, the Government of India agreed to consider the ulitization of Jawahar Lal Nehru Port in Mumbai for Nepal's use of its transit cargo.
During the visit, directions were given to expeditiously complete the following projects and welcomed the following new proposals:
- completing the remaining mandated tasks of Joint Technical Level Boundary Committee by June 2005.
- the proposed Institute of Technology in the Far-Western Region of Nepal
- projects on Pancheshwar and Upper Karnali and preparation of the DPR of Budhi Gandaki project
New Proposals
- cooperation for development of road network in the Terai, including the development of identified stretches of Hulaki Rajmarg.
- cooperation for conservation and development of Churia range in Nepal
- establishment of the Joint Project Office for Sapta Koshi Multipurpose Project and Sun Koshi Storage cum Diversion Scheme.
Government of India has expressed its support to the reinstatement of the House of Representatives on April 24, 2006 and the handing over of political power to the representatives of the people of Nepal. In a statement issued on 25 April 2006, the Government of India stated that "as a close friend and neighbour, India has all along stood by the people of Nepal in their unrelenting struggle for the restoration of their democratic rights. We are ready to render unstinted support to the people of Nepal in whatever manner they wish...".
India has recently released about Nrs. 1.2 billion to Nepal under the DRP scheme that it had withhold since June 2005 and, expressed willingness to extend assistance as per the need and wish of the Nepalese Government.
May 2006
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