Indian Foreign Minister’s Visit to Nepal

In preparation for the visit of Prime Minister Narendra Modi to Nepal, Indian Foreign Minister Sushma Swaraj visited Nepal from July 25 through July 27, 2014. She had jointly presided over the meeting of Nepal-India Joint Commission. It was first ever held after 27 years. She met with the president, prime minister, foreign minister, and other political leaders. She said to the reporters that her visit to Nepal had been more fruitful than anticipated. Prime Minister Modi was scheduled for visiting Nepal on August 3 & 4, 2014.

Kathmandu, July 24, 2014: Minister for External Affairs of India Sushma Swaraj is arriving in Kathmandu tomorrow afternoon, Friday, July 25, 2014 on a three-day official visit to Nepal. She is visiting Nepal at the invitation of Minister for Foreign Affairs Mahendra Bahadur Pandey, actually in preparation for the visit of her boss Prime Minister Modi. Her visit paves the way for the visit of the Indian Prime Minister to Nepal. Minister Swaraj's visit also expected to add a new dimension to Nepal-India relations, as India declared its relations with its neighbors was its top priority.

Spokesperson for Ministry of External Affairs of India Syed Akbaruddin said the date for the Indian Prime Minister's visit would be set after External Affairs Minister Swaraj's visit; all issues of mutual cooperation and concern would be discussed at the Nepal-India Joint commission meeting to be held in Kathmandu jointly with the Nepalese foreign minister.

"Visit of the External Affairs Minister, endeavors will pave way for PM Modi's visit," spokesperson Akbaruddin said, adding, "relating to power deal- we are engaged very constructively at the top political level that is mutually beneficial." Describing the Nepal-India relations as robust and vibrant, he said discussions would be held on power development in a way it would be acceptable and profitable to both the countries.

In course of her visit, the Indian External Affairs Minister will separately meet with President Dr Ram Baran Yadav, Prime Minister Sushil Koirala, Chairman of Constituent Assembly Subas Nemwang, and Chairman of UCPN-Maoist Prachanda and leaders of the major political parties.

The Nepal-India Joint Commission Meeting will be held on Saturday. The commission is the highest mechanism overseeing bilateral relations at the Foreign Ministers' level. It was set up 27 years ago. Although it was stated that the commission would meet alternatively in Nepal and India every year, this meeting would be the first after 22 years. Its objective is to enhance cooperation in all areas of mutual interest while building on the cooperative relations between Nepal and India.

The meeting is being held after 23 years. Both Nepal and India will discuss the whole gamut of bilateral ties at the meeting. Officials representing different sectors would hold a meeting to prepare agenda for the commission meeting, and to recommend the agreed topics pertaining to their respective sectors before the joint commission meeting would be held.

Twenty-five bilateral mechanisms for discussing various subject matters including energy, commerce and security have been established at different levels. The meeting will hold intensive discussions on five different subjects such as economic cooperation, trade and transit, water resources, border management and security. It will also review the progress in enforcing the decisions made at the second meeting of the Nepal-India joint commission, according to Deepak Dhital: spokesperson for the Nepalese Ministry of Foreign Affairs. He also said that the officials related to the five sectors would be holding vigorous discussions.

Spokesperson Dhital said the meeting would focus on the five clusters of subjects: the first cluster of political, security and boundary issues, the second of economic cooperation and infrastructure, the third of trade and transit, the fourth of power and water resources, and the fifth of culture, education, media and other issues.

At the meeting, Nepal assigns the priority to the physical infrastructures, construction of the Mid hills Highway, construction of a bridge over the Mahakali River, production and development of hydropower, development of the Pancheshwar Multipurpose Project, electricity purchase agreement, resolution of the inundation problem, development of agriculture science and technology, increase in agriculture production and setting up of an agro processing centre among other projects. It will also look for the ways of removing the trade gap between Nepal and India, and of controlling unauthorized trade and increasing loan assistance.

India has shown its interest in the construction of the Kathmandu-Tarai Fast Track, the Postal Highway, a bridge at Jhulaghat of Baitadi and the Mahakali River Bridge, a cricket academy, and in the Project Development Agreement (PDA) of the Upper Karnali, Upper Marsyangdi and Arun-III hydroelectricity projects. The Nepal-India joint commission also will discuss issues such as the public-private partnership for implementing construction projects, and increasing the Indian investment.

Twenty-seven senior officers each from Nepal and India would participate in the commission's meeting presided over by the Foreign Ministers of both the countries. The Nepalese delegation comprises Officiating Secretary to the Ministry of Foreign Affairs Shanker Das Bairagi, and the high officials of the Ministries such as of Energy; Commerce and Supplies; Agriculture; Defense; Health and Population; Irrigation; Finance; Home Affairs; Physical Infrastructure and Transport; Education; Urban Development; Culture, Tourism and Civil Aviation; Industry; Forests and Soil Conservation; Youth and Sports and Information and Communications, and the Charge d' Affaires at the Nepalese Embassy in New Delhi, India.

The Indian delegation comprises Foreign Secretary Sujatha Singh, Development Partnership Administration Secretary Sujata Mehta, senior officials of the Indian Cultural Relations Council and the Ministries such as of Culture; Energy; Roads and Highways; Commerce and Industry; Water Resources; Railways; and Human Resources Development; and the Indian Ambassador to Nepal. (Source: RSS news on Gorkhapatraonline.com, July 24, 2014)

Kathmandu, July 25, 2014: Talking to the reporters upon arrival at the Tribhuvan International Airport for a three-day official visit, External Affairs Minister of India Sushma Swaraj said that the new government of Narendra Modi attached a high priority to Nepal.

Indian Foreign Minister Swaraj also said that the Nepal-India Joint Commission meeting scheduled for Saturday would benefit both the countries. “The joint commission meeting is going to be held in Kathmandu following the formation of the Bharatiya Janata Party government, and this has been made possible by the new government, which gives Nepal-India ties a top priority,” the Indian External Minister said at the Airport. She also said that the Modi government had a clear strategy to consolidate the bilateral relationship with its immediate neighbors including Nepal.

Indian Minister Swaraj is scheduled to co-chair the third Nepal-India Joint Commission meeting to be held in Kathmandu on July 26. Minister Swaraj will be busy with political meetings starting on the Saturday morning. She will participate in the commission's meeting during the day. The meeting is scheduled to hold intensive deliberations in five different clusters of economic cooperation, trade and transit, water resources, border management, and security.

The meeting will also review the progress made in enforcing the decisions made at the second meeting of the joint commission held 23 years ago.

Indian External Affairs Minister Sushma Swaraj is scheduled to pay a courtesy call on President Dr Ram Baran Yadav on Saturday. Minister Swaraj will hold separate meetings with Prime Minister Sushil Koirala, Chairman of the Constituent Assembly Subas Chandra Nemwang, and main opposition leader also Chairman of UCPN-Maoist Prachanda. Minister Swaraj will attend a dinner hosted by Minister for Foreign Affairs Mahendra Bahadur Pandey.

On the Sunday morning before returning home, she will pay homage to Lord Pashupatinath at Gaushala in Kathmandu. (Source: Gorkhapatraonline.com, July 25, 2014)

Kathmandu, July 25, 2014: Talking to reporters following the cabinet meeting today, Minister for Information and Communications Dr Minendra Rijal said that the government finalized the agenda for the Nepal-India Joint Commission meeting. Indian Minister for External Affairs Sushma Swaraj is arriving in Kathmandu later this evening leading a high-level Indian delegation to the meeting. (Source: Gorkhaaptraonline.com, July 25, 2014)

Kathmandu, July 26, 2014: the third meeting of Nepal-India Joint Commission was held in Kathmandu today. The meeting held after 23 years dwelt on the entire gamut of bilateral relations including outstanding issues such as Kalapani and Susta.

The National News Agency (RSS) received the information that five main cluster and their sub-clusters ranging from political, security, boundary and boarder issues, review of the Treaty of Peace and Friendship of 1950 and other bilateral agreements were on the agenda..

Constituting a Foreign Secretary-level mechanism, setting up the Eminent Persons Group (EPG), security and defense cooperation, repair and maintenance of boundary pillars and installation of the missing ones, establishment and functioning of Boundary Working Group, construction of road near boarder causing inundation, and finalization of an MOU on drug control demand, reduction and prevention of illicit trafficking in narcotic drugs and psychotropic substances among others will be discussed under political, security, boundary and boarder management cluster at the meeting.

Other issues such as the line of credit from EXIM Bank, cooperation in agricultural development, mid-hill highway (Eastern sector including Sikkim link near Chiyo Bhanjyang), widening of East-West Highway (central and eastern sector), Mahakali bridge of Mahendranagar, suspension bridge at Dadeldhura, postal highway and feeder roads (Tarai roads)-Phase I and II, Tanakpur Mahendranagar link road, fast track between Kathmandu and Tarai, rail link–phase I and II, rolling stock for railways, railway development (Bardibas-Simara-Birgunj), cricket stadium in Pokhara, cooperation in Pashupati Area Development, opening of trauma centre, conservation of Chure region, installation of shallow tube wells in Tarai region, setting up of Nepal Police Academy, extension of the MoU on small development project and transit facilitation, youth exchange, constructions of Nepal-India Friendship Pashupati Dharmashala, a police clinic in Hetauda, Nepal-India Friendship Auditorium, presenting 2,500 kg of sandalwood to Nepal, conservation of heritages on the premises of the Pashupatinath, and goiter prevention, measures to reduce trade deficit, trade facilitation, countervailing duty, Rauxal-Amalekhgunj pipeline, infrastructure development at special economic zone at Birgunj, construction of additional SEZ, construction of ICD at Mahendranagar, transshipment process at Kolkata port and the power trade agreement, TOR of Pancheshwor Development Authority, expedition of Pancheshwor Multipurpose Project, concluding of project development agreement of Upper Karni and Arun III, and cross border transmission line at Karmaiya-Kushaha-Raxaul-Parbavnipur were on the agenda.

Minister for External Affairs Swaraj headed the 27-member Indian delegation while Foreign Minister Mahendra Bahadur Pande led the Nepalese delegation to the meeting. (Source: RSS news on Gorkhapatraonline.com, July 26, 2014)

Kathmandu, July 27, 2014: After a 12-hour marathon Nepal-India Joint Commission meeting in Kathmandu, Nepalese and Indian authorities issued today a 26-point joint press statement (see addendum for details) reiterating the need for reviewing, adjusting and updating all bilateral treaties, understandings and agreements, including the Treaty of Peace and Friendship of 1950 reflecting the current realities. Nepal and India also finalized the terms of reference for Eminent Persons Group (EPG) formed to review all bilateral treaties, understandings, and agreements including the Peace and Friendship Treaty of 1950.

The EPG would comprise four distinguished persons such as one parliamentarian, one lawyer, one representative of civil society and an economist from each side. Each parliamentarian would lead the EPG of the respective side. The idea of forming an EPG was conceived during the then Prime Minister Baburam Bhattarai’s visit to India in October 2011.

The EPG has a mandate to make necessary recommendations for updating or amending all the existing treaties and agreements between the two neighbors. Head of India Division at the Nepalese Ministry of Foreign Affairs Amrit Rai said that the EPG has a two-year term to submit its report to the respective government. “The next meeting of the Nepal-India Joint Commission will be held in New Delhi next year,” said Rai.

The Nepal-India Joint Commission directed the foreign secretaries of both countries to make necessary recommendations to appoint the eminent persons to the EPG, and it also directed the Nepal-India Boundary Working Group to commence field work at the earliest.

The Nepal-India Joint Commission also agreed to revive a foreign-secretaries level mechanism to review the progress of all the ongoing projects between the two countries. Foreign Minister Mahendra Bahadur Pandey and his Indian counterpart Sushma Swaraj put emphasis on the need for promoting greater collaboration and cooperation in combating cross-border crimes. They reiterated the commitment of their respective governments not to allow their territories to use against each other.

Nepalese Foreign Minister Pandey said that the Nepal-India Joint Commission meeting had set tone, ground and agenda for the upcoming visit of India’s prime minister. (Source: Thehimalayantimes.com, July 27, 2014)

Kathmandu, July 26, 2014: Nepalese top leadership including President Dr Ram Baran Yadav and Prime Minister Sushil Koirala during separate meetings with the visiting External Affairs Minister Sushma Swaraj hailed the efforts made by the new government of India on improving the Indo-Nepal relations. Minister Swaraj also met with Chairman of UCPN-Maoist also Leader of the Opposition Prachanda.

In the separate interaction with Minister Swaraj, the Nepalese leaders expressed their happiness about, and excitement of the initiative taken by India to bring new momentum to the bilateral ties, and they stressed the need for stepped-up engagement between the two countries.

The Nepalese leaders said to Minister Swaraj that they were really upbeat over the Modi's planned visit, which they think would bring the two countries much closer. Minister Swaraj in turn has said that Nepal stands high on the priority list of the Modi government and the testimony to it is her visit to Nepal within two months of taking office.

Spokesperson for External Affairs Ministry of India Syed Akbaruddin described the meetings as productive. "In general if I have to encapsulate the views, there is a lot of excitement in Nepal about India's intention to reengage and reinvigorate the relationship. They are all looking forward to Prime Minister's forthcoming visit and all feel that this is a historic opportunity to move to the next level in terms of our engagement with each other," he said. (Source: Ndtv.com, July 26, 2014)

Kathmandu, July 26, 2014: Indian Prime Minster Narendra Modi is for the trans-Himalayan link to bring Nepal, India, and China together. India and China have been keen on having stronger north-south connectivity through Nepal

China’s Ambassador to India Wei Wei recently proposed trans-border cooperation with India for the Trans-Himalayan Economic Growth Region. Delhi and Beijing are likely to expedite modernizing the infrastructures at the Nathu La: a pass connecting Tibet and Sikkim, and initiate full-fledged trade, according to Raja Mohan.

Both India and China are keen on having stronger North-South connectivity through Nepal, something the Indian security establishment has been resistant to for years. This will vastly enhance access to and from China to the Hindi speaking heartland of India in UP and Bihar. Modi sees Nepal as an important player in that China-Nepal-UP/Bihar connectivity. (Source: Ekantipur.com, July 27, 2014)

Kathmandu, July 27, 2014: External Affairs Minister Sushma Swaraj today said that her three-day visit to Nepal was very successful. The two neighbors agreed to finalize the text of a power trade deal and review and adjust a crucial peace and friendship treaty of 1950 to reflect the current realties. "It was a very successful trip and the achievements were more than my expectations," Minister Swaraj said at Tribhuvan International Airport in Kathmandu before leaving for New Delhi. Minister Swaraj said that both sides removed hurdles and agreed to step up cooperation in a number of key areas.

External Affairs Minister Sushma Swaraj and Nepalese counterpart Mahendra Bahadur Pandey underscored the need for harnessing vast hydropower potentials of Nepal for mutual benefits. They directed the concerned authorities to finalize the text of a Power Trade Agreement (PTA) at the earliest. The Terms of Reference of setting up the Pancheswar Development Authority was finalized. So, the two leaders directed the concerned authorities for early completion of the Detailed Project Report (DPR) of the Pancheshwar Multipurpose Project. (Source: Economictimes.indiatimes.com/news)

Kathmandu, July 27, 2014: Minister for External Affairs of India Sushma Swaraj said that her visit to Nepal was very fruitful and more than expected. In her brief remarks to the media at the Tribhuvan International Airport before leaving home following a three-day official visit of Nepal, Ms Swaraj described her visit as successful and that she was fully satisfied with it. "My Nepal visit has been fruitful in further consolidating and deepening the Indo-Nepal relations", she said. The agreement reached at the joint commission on 26 areas provides a new roadmap for mutual cooperation, she added. (Source: Gorkhapatraonline.com, July 27, 2014)

Kathmandu, July 28, 2014: at the Parliamentary session held today, lawmakers advised the government to make Indian Prime Minister Narendra Modi's upcoming official visit to Nepal fruitful. They pointed out the need for strengthening bilateral relations putting national sovereignty and nationality at the center.

Speaking at the zero hour of the parliamentary session, the lawmakers advised the government to make a clear agenda to lead the nation on the path of economic prosperity strengthening bilateral relations with India. They also suggested the government to open the border point with India in the Kapilvastu district. (Source: Gorkhapatraonline.com, July 28, 2014)

Kathmandu, July 28, 2014: The three major parties such as the ruling NC and CPN-UML, and the main opposition UCPN-Maoist held a meeting today to discuss how to make the upcoming visit of Indian Prime Minister Narendra Modi successful and in the interest of the country.

Vice-president of NC Ram Chandra Poudel said that they discussed the matters concerning further consolidation of the bilateral relations, and they were going to meet again tomorrow along with the ministers concerned for the discussion on the cooperation agreements to be signed during the Indian PM's visit. (Source: Gorkhapatraonline.com, July 28, 2014)

Breaking protocol, Nepalese Prime Minister Sushil Koirala will personally receive his Indian counterpart Narendra Modi at the airport in Kathmandu when he comes to Nepal on a two-day visit on Aug 3. Prime Minister Modi will be accompanied by a 101-member delegation including seven ministers, senior government officials and CEOs of industry, and journalists.

A special welcome ceremony will be held at the Tribhuvan International Airport in Kathmandu. A guard of honor will be presented to Prime Minister Modi. Advisor to Prime Minister Koirala on foreign relations Dinesh Bhattarai told IANS that the prime minister himself would welcome Modi. "This reflects the importance Nepal is attaching to Modi's visit," he said.

In 2006, Indian Prime Minister Manmohan Singh had received his Nepali counterpart Girija Prasad Koirala at the New Delhi airport.

At Hyatt hotel, senior Indian government officials will brief Prime Minister Modi on his itinerary including meetings and bilateral talks to be held. According to the tentative itinerary, Prime Minster Modi will attend a luncheon hosted by the Indian embassy with the political leaders unofficially invited on the first day of his visit.

He will speak in the parliament later. He will be the first head of government to address lawmakers of Nepal after the restoration of democracy in Nepal in 1990. According to a source, Modi may speak in Hindi.

Modi's three armored vehicles including his personal vehicle and security personnel will be airlifted to Kathmandu on two special transport planes. Additional vehicles will come via land. The Indian prime minister will be given Z-plus security by a combination of all security agencies including the Nepal Army. (Source: Anil Giri for IANS Indiantimes.com, July 29, 2014)

Kathmandu, July 30: Minister for Foreign Affairs Mahendra Bahadur Pandey today briefed the Legislature-Parliament about the agreements reached during the meeting of the Nepal-India Joint Commission held on July 26. He also informed the parliament that the Indian Prime Minister Narendra Modi would be paying a visit to Nepal onAugust 3 and 4 and that the government has completed all preparations to that end.

He stated that Indian External Affairs Minister Swaraj's visit has made the environment for Modi's visit and also added further trust in the bilateral relations.

Minister Pandey said that the Indian Prime Minister would address the Parliament, hold high-level meetings and talks and pay homage to Lord Pashupatinath. He said that the Indian Prime Minister's official visit taking place after 17 years was of special significance and that the government was effortful to make the visit fruitful for the country.

The Minister for Foreign Affairs expressed his belief that the Indian Prime Minister's visit would further strengthen the bilateral relations and help expand the high level political contacts. He said the visit be taken as an indicator of Modi giving high priority to relations with neighboring countries. He also said that Prime Minister Sushil Koirala had continued consultations and discussions with political parties in course of the preparations for the Indian Prime Minister's visit. (Source: Gorkhapatraonline.com, July 30, 2014)

Addendum
A 26-point joint statement after evaluating entire gamut of Nepal-India relation (posted on myrepublica.com)

Joint Press Statement on the Official Visit to Nepal by Her Excellency Smt. Sushma Swaraj, Minister of External Affairs, Government of India, 25-27July 2014.

1. Her Excellency Smt. Sushma Swaraj, Minister of External Affairs of the Government of India is on an official visit to Nepal on 25-27 July 2014 at the invitation of Hon’ble Mr. Mahendra Bahadur Pandey, Minister for Foreign Affairs of the Government of Nepal. The delegation includes Smt. Sujatha Singh, Foreign Secretary, Ms. Sujata Mehta, Secretary (ER&DPA) and other senior officials of the Government of India.

2. H.E. Smt.Swaraj paid courtesy calls on The Rt. Hon’ble Dr. Ram Baran Yadav, President of Nepal, The Rt. Hon’ble Mr. Sushil Koirala, Prime Minister and The Rt. Hon’ble Mr. Subash Chandra Nembang, Speaker of the Legislature-Parliament. She also met with the Leader of Opposition in the Legislature-Parliament The Hon. Pushpa Kamal Dahal ´Prachanda´ and leaders of other political parties.

3. Hon. Mr. Pandey and H.E. Smt. Swaraj co-chaired the third meeting of the Joint Commission, leading their respective delegations on 26 July 2014. The meeting was held in an atmosphere of utmost cordiality and warmth. The Hon. Minister hosted a dinner in honor of H.E. Smt. Swaraj.

4. The Joint Commission was formed in 1987 at the Foreign Ministers’ level with a view to strengthening understanding and promoting cooperation between the two countries for mutual benefits in the economic, trade, transit and industrial fields and in the multiple uses of water resources. Both Ministers expressed happiness at the reactivation of the Joint Commission after a gap of 23 years and underscored the importance of the Commission in furthering bilateral relations and cooperation.

5. The Foreign Minister of Nepal warmly welcomed his Indian counterpart. He thanked the visiting External Affairs Minister for accepting the invitation and choosing Nepal as one of her early foreign trips. He stated that her visit would help further strengthen the bonds of ties between the two countries and expand and deepen the scope and dimension of cooperation. The Minister of External Affairs of India thanked The Hon. Foreign Minister of Nepal for the invitation and warm hospitality extended to her and her delegation since their arrival. She expressed that her visit to Nepal demonstrates the importance that her Government attaches to good, neighborly relations, particularly with a friendly country like Nepal with which India shares an ancient, deep-rooted and vibrant friendship based on shared civilization ethos. She expressed the willingness of the Government of India to explore further areas of mutual cooperation and promote partnerships, while reinvigorating the existing mechanisms for enhancing mutual benefit between the two countries.

6. Both foreign ministers shared that both countries hold similar views on major international issues affecting the developing countries and work in close coordination with each other in the United Nations and other international fora. The Nepalese side reiterated its support for India’s candidature for permanent membership of the UN Security Council.

7. The Nepalese side welcomed the forthcoming visit of H.E. Narendra Modi, Prime Minister of India, to Nepal.

8. The Joint Commission reviewed the entire gamut of Nepal-India relations. It affirmed that the Joint Commission would make an important contribution to further strengthen the traditionally warm and close relations and add new dimensions in the areas of cooperation. The two leaders underlined the importance of timely meeting of the Joint Commission in the future.

9. The Joint Commission reiterated the need for reviewing, adjusting and updating the Treaty of Peace and Friendship 1950, reflecting the current realities. It directed the Foreign Secretaries to make necessary recommendations. The Joint Commission also directed the Nepal-India Boundary Working Group to commence field work at the earliest.

10. The two Ministers expressed satisfaction over the ongoing cooperation in defense sector. They expressed happiness over the ongoing cooperation between the security agencies of both countries and emphasized the need for promoting greater collaboration and cooperation in combating cross-border crimes. They reiterated the commitment of their respective Governments not to allow their territories to be used against each other.

11. The two sides noted the significance of enhancing productive capacity in agriculture to positively impact on livelihoods of the people. The Indian side would continue to supply chemical fertilizers to Nepal and extend cooperation for the establishment of a Deemed Agricultural University.

12. The Nepalese side appreciated India’s continued technical and financial cooperation in building physical infrastructures including roads, railways and bridges.

13. The two Ministers stressed the need for further enhancing bilateral trade and investment to foster mutually beneficial economic growth and development. They noted Nepal’s trade deficit with India and agreed to take effective measures to address the problem. Both sides stressed the need to complete necessary formalities to enable entry into force of the Bilateral Investment Protection and Promotion Agreement (BIPPA). In order to promote Nepal’s exports to India, the Indian side agreed to further relaxing the rules of origin requirements; simplifying and streamlining transit and customs related procedures; eliminating TBT and making the SPS related measures less stringent; and lifting quantitative restrictions on the export of Nepalese products to India.

14. Both sides directed the concerned authorities to conclude pending Letters of Exchange (LOEs) at the earliest with a view to facilitating trade and traffic in transit.

15. The authorities concerned have been instructed to carry out the work of the Terai Roads under Phase I projects with utmost priority and commence the Phase II projects by concluding agreement as soon as possible. The Joint Commission agreed that the construction of Tanakpur-Mahendranagar Link Road should be expedited. It also underlined the need for expediting the construction work of the cross-border railway connectivity.

16. The Joint Commission directed the concerned authorities to accelerate the construction work in the Integrated Check Posts (ICPs) to bring them into early operation.

17. The two leaders underscored the importance of harnessing vast hydropower potentials of Nepal for mutual benefits. They directed the concerned authorities to finalize the text of a Power Trade Agreement at the earliest. While noting the finalization of the Terms of Reference of the Pancheswar Development Authority, they directed the concerned authorities for early completion of the DPR of the Pancheswar Multipurpose Project.

18. The Joint Commission expressed satisfaction over the implementation of 400 kV Dhalkebar-Muzaffarpur Double Circuit Cross-Border Transmission Interconnection and noted that the transmission interconnection would integrate the power grids on the two sides of the border and pave the way to initiate unfettered flow of power between the two countries. The Joint Commission decided to expedite the construction of 132 kV Kataiya-Kusaha and 132 kV Raxaul-Parwanipur Transmission Line Projects so that the transmission lines would help import additional power from India in the short term and help address power deficit situation in Nepal.

19. Both sides expressed satisfaction over the near completion of river training work over Lalbakaiya, Bagmati and Kamala. They also discussed other river training work over Dodha, West Rapti, Mohana and Lakhandehi.

20. The Joint Commission welcomed the signing of MOU on the installation of 2,700 shallow tube-wells in the terai region.

21. The Nepalese side appreciated the continued Indian cooperation in human resource development of Nepal. It welcomed India’s decision to increase scholarships for Nepalese students and expressed the hope that such scholarships would be processed through Government channels.

22. The two sides discussed construction of an international cricket stadium at Pokhara and continuation of Goiter Control Program. The Indian side agreed to arrange for necessary equipment and other assistance for an early operationalisation of the Bharat-Nepal Maitri Emergency and Trauma Center.

23. The Nepalese side would take necessary steps for the extension of Small Development Program, which both sides agreed to align with Nepal’s development programs and priorities. The Nepalese side would also look into the matters pertaining to benefits to the Indian teachers working in Nepal.

24. The Joint Commission noted the satisfactory progress in the projects covered under the EXIM Bank Lines of Credit (LOC). At the request of the Nepalese side, the Joint Commission acknowledged the need to relax the requirement of Indian content for the road projects included in the US$ 250 million LOC and agreed that the Indian content requirement would be reduced to 50 %. It called upon the LOC Review mechanism to expedite the work of the projects identified under the US$ 250 million LOC and agreed that EXIM Bank funding could be used for bigger projects with greater socio-economic impact in future.

25. The Joint Commission appreciated the ongoing bilateral cooperation in culture and tourism sectors and agreed to further expand and deepen cooperation in these fields. It discussed the possibilities of extending cooperation for the development and conservation of Pashupati, Lumbini, Janakpur and Baraha chhetra areas.

26. H.E. the External Affairs Minister of India extended an invitation to The Hon. Foreign Minister of Nepal to pay an official visit to India. The Hon. Foreign Minister of Nepal accepted it with pleasure. Date would be worked out through diplomatic channels.

Kathmandu, 26 July 2014

ENDS

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