Nepal and India to ink multiple agreements today

Kathmandu: Nepal and India are set to ink agreements on railway, hydropower and petroleum pipeline.

The two countries will reach an agreement on certain areas as well as lay the foundation stone and inaugurate a number of projects during Prime Minister Puspa Kamal Dahal Prachanda’s visit to India on Thursday.

According to the information received by Nepal Views from the Ministry of Foreign Affairs sources, many points in the draft agreement are related to hydropower projects. Among them, the announcement of the construction of a trilateral power transmission line between India, Nepal and Bangladesh will be more significant. Nepal has been requesting India to facilitate the export of electricity to Bangladesh.

India has agreed to construct a tri-lateral transmission line. In the first phase, a trilateral power trade will also be announced to export 40 MW of electricity to Bangladesh.

It has been learned that India will build the necessary grid in its own area for this purpose. Such an agreement is a big leap in Nepal’s hydropower sector. Earlier, Nepal was preparing to sell its surplus electricity to Bangladesh, but it could not be implemented as it needed India’s territories.

The construction of the trilateral transmission line will enable Nepal to easily sell electricity to Bangladesh.

During the visit, the agreement to build some hydropower projects by India and Indian companies will also be made public on Thursday. An agreement has been reached to construct the Lower Arun project by The Sutlej Hydropower Corporation of India. Similarly, an agreement has been reached to construct the Phukot-Karnali Hydropower Project by the National Hydropower Corporation of India.

Some announcements on railway will also be made on Thursday. The kurtha-Bijlapur railway section will also be handed over. Indian cargo railway line from India’s Bathnaha to Nepalgunj customs will also be inaugurated.

Discussions are underway between the two countries on the Raxaul-Kathmandu railway, the sources said. The two countries will agree to share the basic project report of the railway link. According to the Indian Credit Line FLS report, the new transmission lines and related substations will be funded by India.

Another important issue is to amend the Cross-Border Petroleum Pipeline Transit Treaty. Construction of Siliguri-Jhapa pipeline will begin while Motihari-Amlekhgunj pipeline will be constructed and expanded. This includes the development of storage facilities in Chitwan and Jhapa.

The Prime Ministers of both countries will inaugurate the integrated check post at Nepalgunj and Rupediha in India. Similarly, the foundation stone of integrated check post will also be laid in Bhairahawa and Sunauli. As per the agreement between Nepal and India to set up four check posts, three have already been set up. The construction of the remaining Bhairahawa-Sunauli section is set to begin very soon.

The two prime ministers will also lay the foundation stone for the second phase of the Motihari-Amlekhgunj petroleum pipeline. The foundation stone for the Gorakhpur-Butwaal transmission line will be laid as well.

National Payment Corporation of India and Nepal Clearing House Limited have signed a cross-border payment agreement. An agreement will also be reached for the development of an integrated check post at Dodhara Chandani in Nepal with India’s grant assistance.