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Source- The post is based on the article “A pragmatic approach, for better India-Nepal ties” published in “The Hindu” on 10th June 2023.
Syllabus: GS2- Bilateral groupings and agreements
Relevance– India and Nepal bilateral relationship
News- The Prime Minister of Nepal, Pushpa Kamal Dahal Prachanda’s first bilateral visit to India since assuming office
What was the attitude of leadership during the summit?
He has not paid attention to irritants in relationship such as the 1950 Treaty, border differences, and India’s reluctance to receive the report of the Eminent Persons Group set up by the two governments.
The Indian Prime Minister has shown sensitivity. He reassured Prachanda that differences on the border issue would be resolved to mutual satisfaction. Neither side tried to justify their official version of the border as the correct one.
What were important developments during the summit?
The visit has helped in underlining the real priorities, such as hydropower projects, energy supply to India, infrastructure, access to Indian river transport, innovative tourism circuits, and better connectivity.
The finalised Detailed Project Report of Mahàkali Treaty will be submitted to both governments expeditiously. The modalities of implementation will be concluded within one year after their approval of the DPR.
There is a new dimension of cooperation in the power sector with the transmission passage from Nepal to Bangladesh through India.
There was finalisation of an agreement for long-term power trade. It was agreed to increase the quantum of export of power from Nepal to India to 10,000 MW within a timeframe of 10 years.
Enhancing digital financial connectivity is another crucial development. The MoU between the National Payments Corporation of India and the Nepal Clearing House Ltd. for facilitating cross-border digital payments.
India offered to create a ground station and supply 300 user terminals to offer the services of the South Asia Satellite to Nepal. They would promote regional cooperation in the space sector, and space technology applications.
What is the way forward for improvement in the bilateral relationship between India and Nepal?
The real challenge for Nepal is to depoliticise cooperation with India, especially in water resources cooperation. It needs to improve the quality of democracy and governance and check unbridled corruption.
For India, it may be necessary to address the perception in Nepal that it is no longer a foreign policy priority.
It is necessary to give a sense of ownership, equality and credit for progress in sectors such as hydropower to parties across the political spectrum.
