India and Nepal signed MoU on power and transport

Even as India on Saturday extended support for development of Nepal’s infrastructure and inked MoUs to put the landlocked state into the grid of regional connectivity through Bangladesh, Narendra Modi advised his Nepalese counterpart K P Sharma Oli to address remaining grievances of the agitationists by ensuring Constitution through consensus and dialogue. Oli said in his statement that he had come to clear all misunderstandings and had managed to do so.

India had offered $1 billion in aid to Nepal, but reconstruction efforts have been slow to get started due in part to political turmoil and food and fuel shortages in the isolated state.

Seven agreements were signed at the ceremony in Hyderabad House, which included agreements on post-quake reconstruction assistance and construction of postal highways. Under the accord, $50 million each would be utilised in the health, education and cultural heritage sectors in 31 earthquake-hit districts of Nepal.

“After decades of struggle, the framing and promulgation of Nepal’s constitution is an important achievement”, Modi told reporters after meeting Oli, adding its success would depend on consensus and dialogue. He also said that India’s security is linked to the long term stability of Nepal.

On Monday, Nepal signed an agreement with India to import additional 80 MW of electricity to ease its energy crisis.

The 140-km Dhalkebar-Muzaffarpur transmission line project, which extends from Dhalkebar in Nepal to Muzaffarpur in India, can handle capacity of up to 400 KV.

In his first overseas trip after assuming charge of the top office in October previous year, Oli was accompanied by a 77-member delegation including his wife Radhika Shakya, Deputy Prime Minister and Foreign Minister Kamal Thapa, Finance Minister Bishnu Poudyal, Energy Minister Top Bahadur Rayamaji and Home Minister Shakti Basnet among others.