Back
to Headlines
India
offers Rs100 cr grant to Nepal
New
Delhi: Indo-Nepal relations were given a major boost on
Friday with the Manmohan Singh Government announcing a one-
time grant of Rs100 cr to Nepal plus other economic and infrastructural
development incentives to bring the socio- economic status
of the Himalayan kingdom back on track. The various incentives
were announced in a joint press statement issued at the end
of Prime Minister Girija Prasad Koirala's four- day visit
to New Delhi. A spokesman said that essentially the aid to
Nepal amounted to Rs 1000 cr.
India said that apart
from the Rs 100 cr one-time grant, it would expedite progress
on long-term mega infrastructure projects in the areas of
roads, railway linkages, border infrastructure, water resources
and construction of an oil pipeline, Special Economic Zone,
airports upgradation, and other areas to be mutually agreed
upon by the both governments. It also offered a soft credit
line of 100 million dollars for the execution of infrastructure
development projects as prioritised by the Government of Nepal
and agreed to enhance its 'Aid to Nepal' budget for the current
financial year from Indian Rs. 65 crore to Indian Rs. 150
crore annually. Both sides also agreed that New Delhi would
waive off dues outstanding as on date owed by the Government
of Nepal to the Government of India on account of defence
purchases. It was also agreed that India would immediately
arrange for the supply of 25,000 metric tons of fertilizers
to Nepal at subsidized prices and would grant exemption to
all exports of goods manufactured in Nepal into India from
the four percent Additional Duty of Customs. Both sides agreed
that New Delhi would accelerate the release of all funds to
Nepal under the Duty Refund Procedure Scheme and double the
number of scholarships provided by the Government of India
for Nepalese students, including for girls. The Indian Oil
Corporation will work out with the Nepal Oil Corporation the
modalities for rescheduling the dues owed to it on account
of oil supplies, a government spokesman said here.
Koirala
paid an official visit to India at the invitation of Dr. Manmohan
Singh. He was accompanied by Gopal Man Shrestha, Minister
for Physical Planning and Works, Mahantha Thakur, Minister
for Agriculture and Cooperatives, Dr. Ram Saran Mahat, Minister
for Finance, Rajendra Prasad Pande, Minister for Local Development,
Urmila Aryal, Minister of State for Women, Children and Social
Welfare and Adviser to the Prime Minister on Foreign Affairs,
Dr. Suresh Chandra Chalise. The delegation also included senior
officials of the Government of Nepal, a business delegation
and a delegation of media representatives. During his trip,
Koirala met President A.P.J. Abdul Kalam, Vice President Bhairon
Singh Shekhawat, had a meeting with Dr. Manmohan Singh, which
was followed by delegation-level talks. He also met Defence
Minister Pranab Mukherjee, Home Minister Shivraj Patil and
leader of Opposition in the Lok Sabha L.K. Advani. He also
met Congress president Sonia Gandhi and former Prime Minister
Chandrashekhar.