India, Nepal sign pacts on energy, transport

Source: The post is based on the article “India, Nepal sign pacts on energy, transport” published in The Hindu on 2nd June 2023

What is the News?

The Nepalese Prime Minister is on a four-day visit to India.

What are the key discussions and agreements signed on India-Nepal relations during the visit?

Move forward in bilateral relations: India would take forward the 2022 India-Nepal vision document for cooperation in the power sector that sets an ambitious goal in India-Nepal power trade and transmission.

Power Trade Agreement: A long-term Power Trade Agreement has been signed between India and Nepal. Under this agreement, both nations have set a target of importing 10,000 MW of electricity from Nepal in the coming years.

Focus on energy cooperation: A new pipeline will be constructed from Siliguri to Jhapa in eastern Nepal.

Other key agreements signed: These include a) An MoU for the development of Phukot Karnali Hydroelectric Project, b) A Project Development Agreement for the Lower Arun Hydroelectric Project, c) The revised Treaty of Transit under which Nepal will get to access to India’s inland waterways. This is described as “once in a generation” pact by Nepal, and d) Agreement for the export of Nepal’s hydropower to Bangladesh through Indian territory.

Other key developments: a) Inaugurated integrated checkposts (ICPs) at Nepalgunj in Nepal and Rupaidiha on the Indian side, b) Inaugurated a cargo train from Bathnaha in India to Nepal Customs Yard. The rail link was built with an Indian grant.

Both nations also agreed to achieve tangible and time-bound progress on the Pancheshwar multipurpose project.