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India offers line of credit worth $1 billion to Nepal

India offered to provide line of credit worth $1 billion to Nepal during Prime Minister Narendra Modi’s bilateral talks with counterpart Sushil Koirala on Sunday.
Hindustan Times | By Utpal Parashar, Kathmandu
UPDATED ON AUG 04, 2014 12:45 AM IST

Determined to forge a new relationship, Prime Minister Narendra Modi announced a line of credit worth $1 billion to Nepal during bilateral talks with his Nepali counterpart Sushil Koirala on Sunday.

Nepal’s finance minister Ram Sharan Mahat revealed details of the talks between the neighbours at Singha Darbar, the official seat of Nepal government.
India had earlier provided $250 million to Nepal through EXIM Bank of India.

“The two sides concluded two MoUs (on Goitre control in Nepal and cooperation between Nepal Television and Doordarshan),” stated a release issued by Nepal’s foreign ministry.

Read:PM Modi proposes HIT formula for Nepal's development

The sides exchanged letters for terms of reference of the Pancheshwar development authority, which is responsible for constructing the 6,000 MW Pancheshwar multipurpose project.

“The bilateral talks were held in very good and cordial atmosphere. There were also talks of focus on infrastructure and energy,” said Nepal’s foreign minister Mahendra Bahadur Pandey.

He informed that the much expected signing of power trade agreement (PTA) and power development agreement (PDA) of 900 MW Arun-III project could not happen. “We have decided to complete work on both the agreements within the next 45 days and take it forward from there,” he added.

Earlier in the morning Modi was welcomed at Tribhuvan International Airport by his counterpart Koirala, in a break from protocol.

The visit has been termed ‘historic’ visit since it is the first bilateral trip to the Himalayan nation by an Indian head of government in over 17 years.

The visit sees resumption of political dialogue at the highest level between the two neighbours and is expected to bridge the trust deficit that stemmed in the past 10 years due to the so-called neglect of Nepal by the two UPA regimes.

Read:India, Nepal ink three agreements after PM Modi's grand welcome

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