Baburam Did What Others Could Not

Siddhi B Ranjitkar

Dr. Baburam Bhattarai as a prime minister of Nepal has made a state visit to India from October 20 to 23, 2011 following the invitation of Indian Prime Minister Man Mohan Singh. During the visit, Dr. Bhattarai has been successful to impress the Indian senior political leaders and state officials that he is there for serious businesses. Three deals have been signed during the visit, could have been more if the procedural process has not stopped them. Dr. Bhattarai has done what other previous Nepalese Prime Ministers could not do during their India visit. However, his opponents have been saying that what he has done is anti-national. Most probably those opponents have no idea of what are nationals and what are anti-nationals.

His opponents have started off demeaning him immediately after reaching the Indian airport. They have said that the Indian authorities have sent very low-level officials to receive Dr. Bhattarai at the airport breaching the protocol set in the past. These opponents have ignored the tradition India has set to welcome foreign dignitaries not at the airport but at the state official welcoming house.

On October 21, 2011, Nepalese Minister for Industry Anil Kumar Jha and Indian Minister for Finance Pranab Mukherjee have signed off the Bilateral Investment Promotion and Protection Agreement (BIPPA), Nepalese Joint Secretary to Ministry of Commerce and Indian Secretary to Foreign Affairs have signed off the agreement on goiter control, and Nepalese Joint Secretary to Ministry of Finance and Indian Executive Director of Exim Bank have signed off the agreement on the line of credit of US$ 250 million to Nepal in presence of Nepalese Prime Minister Dr. Baburam Bhattarai and Indian Prime Minister Man Mohan Singh in New Delhi.

In New Delhi, Minister for Industry Anil Kumar Jha signatory to the BIPPA has said that the BIPPA reached between Nepal and India is good for Nepal, as Indian investment contributes to increase employment opportunities in Nepal. "Nepal has inked such agreement with six other countries including the United Kingdom and Finland. India has also made the BIPPA with 70 countries of the world and is prepared to sign with other 10 countries so it will not be trouble creating for us, " ‘The Himalayan Times’ of October 23, 2011 quotes the minister.

Speaking at a tea reception held by CPN-UML village committee of Naya Naikap in Kathmandu, Chairman of CPN-UML Jhalanath Khanal on Saturday, October 22, 2011 has said that the BIPPA reached between Nepal and India is against national interests and would create big challenges to the national economy, ‘The Rising Nepal’ of October 23, 2011 writes.

Upon arrival at the International Airport in Kathmandu on Sunday, October 23, 2011 after completing the four-day visit to India, Prime Minister Dr. Baburam Bhattarai said, "An atmosphere of trust between the two neighbors is the most important thing and I feel that my goodwill visit was greatly successful in this regard," ‘The Rising Nepal’ of October 24, 2011 quotes the prime minister.

Talking to the reporters at the airport, Prime Minister Dr Bhattarai has said that he has a one-on-one meeting with his Indian counterpart and has had open and frank talks concerning the two countries, and then he has held meetings at the four different levels such as the state, political, civil society and business community that have opened a new era in the relations between the two countries, ‘’The Rising Nepal’ of October 24, 2011 writes.

The Prime Minister has said that the BIPPA is necessary to reduce the trade deficit of Nepal with India as it will boost the Indian investments in Nepal and would increase the Nepalese export to India consequently decreasing the trade deficit with India. Dr. Bhattarai also has said that BIPPA will not adversely affect the nationality, sovereignty and national independence.

"There has been some misunderstanding regarding compensation (following BIPPA). It is not that we have to provide compensation when an Indian company investing here claims. The point is, Indian companies are entitled to compensations what we give to any other companies operating here," ‘The Rising Nepal’ of October 24, 2011 quotes the Prime Minister.

Concerning the Double Tax Avoiding Agreement, Dr Bhattarai has said that the two countries could not signed off the agreement due to the need for completing the procedural process before signing the agreement but the prime minister has assured the reporters at the airport of signing off the agreement at the time of the visit of the Indian Commerce Minister to Nepal.

The prime minister also has said that he has proposed his Indian counterpart to set up a taskforce comprising four experts each of Nepal and India to review the Nepal-India Peace and Friendship Treaty of 1950 and to update it to suit the 21st century and to activate the bilateral mechanisms that has remained inactive so far; the Indian prime minister has happily accepted it.

Concerning the tourism development in Nepal, the single air route currently operating between Nepal and India has been inadequate; so, the prime minister has proposed three more air routes to be operated from Nepalgunj, Bhairahawa and Janakpur; the Indian authorities have taken it positively.

The prime minister also has said that several Nepalese prime ministers have visited India during the last several decades but the Indian prime minister has not visited Nepal; so, Prime Minister Dr. Bhattarai has invited Indian Prime Minister Dr. Man Mohan Singh to visit Nepal; Dr. Singh has gladly accepted the invitation.

Prime Minister Dr. Baburam Bhattarai has said that his visit to India is mainly the goodwill visit and it has played a significant role in enhancing the goodwill between Nepal and India, to build a trust between the two nations, and has in fact opened a new era in the relations between the two countries.

Some of the cadres of the UCPN-Maoist belonging to the group called Vaidya that has been publicly vehemently opposing the BIPPA have greeted Prime Minster Dr. Baburam Bhattarai with black flags at the International Airport in Kathmandu. They have chanted anti-BIPPA and anti-Bhattarai slogans. Thus, cadres of the UCPN-Maoist also have learned to peacefully protest against what they really don’t like following the democratic norms and values.

One of the leaders of UCPN-Maoist Dev Gurung has charged that the BIPPA signed with India during the prime minister’s visit is anti-national as it goes against the interest of the nation, as Indians will have monopoly on industries in Nepal and would move out not only third-country investors but also the Nepalese investors according to the Nepalese media reports.

Speaking in Chitwan on October 23, 2011, General Secretary of UCPN-Maoist Ram Bahadur Thapa Badal has said that Prime Minister Dr. Bhattarai has ignored the instruction of the Standing Committee of the party signing the BIPPA, ‘The Rising Nepal’ of October 24, 2011 writes.

A joint statement of the sister organizations of the UCPN-Maoist said, “At a time when we need to think about improving the status of Nepali entrepreneurs and businessmen, the agreement with India pledging compensation for Indian businesspeople in Nepal is an anti-nationalistic attitude; we appeal to all nationalists, leftists, republicans and justice-loving people to get united for the cancellation of anti-nationalist agreements like this (BIPPA),” the news posted on the ‘thehimalayantimes.com’ quotes the statement.

Amrita Thapa of All Nepal Women's Association (Revolutionary), Chairman of All Nepal Teacher’s Union Guna Raj Lohani, General Secretary of Nepal Federation of Indigenous Nationalities Suresh Ale Magar, Chairman of Unified All Nepal People's Cultural Federation Ishwor Chandra Gyanwali, President of Association of Revolutionary Journalists Maheshwor Dahal, Chairman of All Nepal Progressive Public Health Professionals' Association Mangal BK, Chairman of Nepal National Dalit Mukti Morcha Tilak Pariyar, Vice President of Nepal National Independent Students Union-Revolutionary (ANNISU-R) Sarad Rasaili have signed the statement.

Speaking at the event held by the Press Chautari Nepal Bhaktapur Chapter in Bhaktapur on October 23, 2011, Former prime minister and senior CPN-UML leader Madhav Nepal said, "It was the mistake on the part of PM Dr Bhattarai to get the BIPPA signed without necessary homework; the BIPPA agreements would create more challenges to the national economy," ‘The Rising Nepal’ of October 24, 2011 quotes. The news posted on ‘Thehimalayantimes.com’ on October 23, 2011 quoting the state news agency called RSS has stated that Madhav Nepal when he visited India as a prime minister of Nepal rejected the request of India for signing off BIPPA, as he thought it was not in favor of the national economic interest.

Spokesperson for Madhesi People’s Rights Forum-Democratic Jitendra Dev has welcomed the BIPPA stating it is a positive and necessary step to attract Indian investments in Nepal, ‘The Rising Nepal’ of October 24, 2011.

The Nepalese business community has whole-heartily welcomed the BIPPA. President of Nepal Chamber of Commerce (NCC) Suresh Kumar Basnet has said that the BIPPA would be a milestone for the development of Nepal, as it would attract Indian investors and contribute to creating jobs in Nepal, ‘The Rising Nepal’ of October 24, 2011 writes. He also has said that BIPPA provides the investors with the security of their investments and would encourage Indian investors to invest in Nepal.

Chairperson of the Federation of Chambers of Commerce and Industry (FNCCI) Suraj Baidhya has said that the BIPPA is historical, as it sends positive signals to Indian investors for investing in Nepal, signing such agreements with other countries will boost confidence in investors and encourage them for investing in Nepal, ‘The Himalayan Times’ of October 23, 2011 writes quoting the state-news agency RSS in New Delhi.

Professional such as senior economist Dr. Chiranjivi Nepal also has welcomed the BIPPA stating it would bring more Indian investors to Nepal; such an agreement is necessary, as the foreign investment is needed for economic prosperity; Nepal has already signed such agreements with other countries; nobody needs to raise any voice against the BIPPA, ‘The Rising Nepal’ of October 24, 2011 writes. He has prophesized that BIPPA would force the political parties to build a consensus on shortening the political transition in Nepal. He has praised Prime Minister Dr. Bhattarai for his courage to reach such an agreement with India.

Addressing the parliament on October 24, 2011, Prime Minister Dr. Baburam Bhattarai has informed the lawmakers that the BIPPA is for boosting the economy of Nepal and has urged all lawmakers to evaluate the BIPPA rising above the partisan and factional line; political parties are not against the foreign investment; negative comments on the BIPPA are not based on facts and reality; Nepal has signed the BIPPA with France some 28 years ago and the processes are on the way to do the same with other nations., ‘The Rising Nepal’ of October 25, 2011 writes.

The prime minister has told the lawmakers that Nepal and India have agreed to upgrade the transmission lines to carry electricity and instructed the concerned agencies to buy and sell up to 200 MW between the two nations. (Previously, it was only 50 MW).

Speaking at the House session, NC lawmaker Dr. Ram Saran Mahat has said that Nepal is a WTO member and a party to Multilateral Investment Guarantee Agency (MIGA), and the WTO and MIGA have stronger provisions pertaining to the safety of foreign investment (than BIPPA); however, he supports the signing of the BIPPA, which has indicated that the Maoists underwent ideological transformation; the BIPPA deal has proved that the NC’s policy on inviting the foreign investment formulated some 20 years ago is correct, ‘The Rising Nepal’ of October 25, 2011 writes.

Asked how he would describe the visit, India’s ambassador to Nepal Jayant Prasad said, “It was highly successful because it helped both sides to get to know each other better; fact is both India and Nepal have arrived at a new way of dealing with each other, which is that we look ahead, instead of behind us, all the time.” (Source: http://business-standard.com/india/news/new-promise-in-india-nepal-ties/453515/)

Prime Minister Dr. Baburam Bhattarai is not only a revolutionary leader but also a revolutionary prime minister has been demonstrated by the achievement he has made during his India visit. Signing off the BIPPA, and showing his strong determination to deal with the Indian authorities as equals, Dr. Bhattarai has done what other prime ministers could not do in the past. No matter what other prime ministers had boasted about their achievements during their India visit, they could not do much more than what Prime Minister Dr. Baburam Bhattarai did.

Annexes

Texts of banquet speeches of Indian Prime Minister Man Mohan Singh and Nepalese Prime Minister Baburam Bhattarai in New Delhi.

http://www.nepalmonitor.com/2011/10/nepal-india_bhattara-print.html
Nepal Monitor: The National Online Journal
Nepal-India: Bhattarai & Singh Address Each Other

Reply Speech by Rt. Honorable Dr. Baburam Bhattarai, Prime Minister of Nepal at the banquet hosted in his honor by His Excellency Dr. Man Mohan Singh, Prime Minister of India.
New Delhi, 21 October 2011

Your Excellency Dr. Man Mohan Singh,
Prime Minister of the Republic of India
Madam Gursharan Kaur,
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,

I would like to express my profound thanks to Your Excellency for the cordial words of friendship and warm sentiments expressed to me and to the people of Nepal. I take this opportunity to extend my sincere thanks for inviting me to pay an official visit to India and for the excellent arrangements made for the visit. I also avail myself of this opportunity to express deep gratitude for the warmth of welcome with which we have been received and gracious hospitality extended to us ever since our arrival in this beautiful city of New Delhi.

We consider Your Excellency a true friend and well wisher of Nepal and a veteran politician and legendary statesman of India. You have always stood steadfast in the support to the promotion of peace and stability and consolidation of democracy in Nepal. I have brought with me warm greetings and best wishes from the people and Government of Nepal to Your Excellency and, through you, to the friendly people and Government of India.

We feel happy that sovereign equality, independence, territorial integrity, mutual respect, and pursuit of the principles of panchasheela have been the bedrock of our relations. They are nurtured by mutual understanding, trust, goodwill and neighborliness underpinned by the deep-rooted people-to-people contacts for centuries. In addition to these time tested traits, free movement of the people reflect our close relationship. I am pleased to mention that exchange of high level visits and interactions have further cemented the friendship and co-operation between us.

Excellency,
We do believe that the friendly and fruitful discussions that we had today on matters of mutual interests will be a pointer to better understanding and increased cooperation between our two countries. We took stock of the progress made in realizing the decisions taken at the high level visits; assessed the status of the implementation in the field; and directed that concerned authorities of both the countries should redouble their endeavors to reinvigorate the bilateral mechanisms so that people at the grassroots could reap the benefits accrued from the implementation of the decisions taken.

We are confident that our visit will give a fresh impetus to further reinforce close bonds of ties and set in motion the pace of economic cooperation between our two countries.

Excellency,
You are fully aware that Nepal is in the throes of a crucial socio-political transformation. We have before us sterling tasks of concluding the country's ongoing peace process and drafting of a new democratic constitution reflecting the expectations of our people. We have simultaneously deployed efforts to both the fronts of highest importance at this juncture and are confident that with dialogue, consensus, unity and coordination among the political parties we will surmount the challenges and deliver to the long cherished aspiration of our people. We count on the continued goodwill, understanding and support of the Government and people of India as we move on to this end.

We, in Nepal, have been keenly observing India's sustained and spectacular economic development in the midst of global economic stagnation. You have demonstrated by example that the leadership and determination backed with conducive policy environment stimulates economic development and prosperity, which others too can emulate. On the other side of our border, the People's Republic of China has equally made great strides in economic development. We are conscious of increased economic and trade interactions taking place between our closest two neighbors, India and China. We believe the dividends of prosperity across our borders should benefit our own people and business as well. From this perspective, we see great economic value and opportunities in developing Nepal as a vibrant bridge between our two neighbors on the way to shared prosperity.

We sincerely appreciate the Government and people of India for the continued cooperation in our development endeavors as a major development partner of Nepal. We see enormous scope in building on the complementarities existing between the two countries that have potentials to lead our peoples towards prosperity as dividend of collaboration. We invite India to enhance and expand partnership both in terms of public and private investment in our priority areas of building infrastructure, harnessing water resources, promoting tourism, developing industrial zones and human resources. We believe that such investments will result into mutuality of benefits and greatly contribute in expanding prosperity in our region.

With growing international stature, economic strength and political distinction backed by enormous reservoir of talented human resources, India deserves dignified place at the high plank of global stage. Nepal appreciates India's role for the cause of developing as well as the least developed countries and would like to see India play her due role in international community commensurate to her strength, size and political clouts.

Excellency,
We attach great importance to our relations with India and hope that our visit would add an important brick in the edifice of our multi-dimensional relations.

With these words, may I invite, Excellencies, Distinguished Guests, Ladies and Gentlemen, to join me in proposing a toast to:

- The health and happiness of Your Excellency Dr. Man Mohan Singh, Prime Minister of India,

- The continued peace, progress and prosperity of the friendly people of India, and

- The everlasting friendship and cooperation between Nepal and India.

I thank you.

Banquet Speech by Indian PM Dr. Man Mohan Singh during visit of PM of Nepal
October 21, 2011


Your Excellency Prime Minister Dr. Baburam Bhattarai,
Madam Hisila Yami,
Distinguished members of the Nepalese delegation,
Ladies and Gentlemen,

On behalf of the Government and people of India, and on my own behalf, I extend a warm welcome to you on your first visit to India as the Prime Minister of Nepal.

We feel honored to receive you soon after you have assumed your new responsibilities.

Excellency, your association with India goes back to your student days at the College of Architecture in Chandigarh, the School of Planning and Architecture and then the Jawaharlal Nehru University in Delhi.

Your life has been one of struggle and sacrifice. You have fought against the status quo, and today you have joined the mainstream of Nepal's political life.

We are very happy to see you guide the destiny of Nepal, a close friend and neighbor, at this important juncture.

India and Nepal share bonds of kinship and cooperation that are defined by geography and enriched by history. Our peoples have traveled across open borders for decades. Generations of Indians and Nepalese have grown up taking this freedom of movement for granted.

We owe it to our people to build upon this foundation for the development, progress and prosperity of both our countries. The peoples of our countries are extremely talented, enterprising and have a remarkable ability to cope with adversity. Our region therefore has great potential and the time has come for us to realize this potential through cooperative effort.

India has long considered it a privilege to join Nepal in its plans for economic and social development. We both face the same challenge of development. It is in our enlightened self-interest that we work in harmony and conduct our affairs with complete transparency. We must understand that by helping each other we only help ourselves. Our prosperity, security and welfare are interlinked.

Nepal is passing through a crucial phase in its quest for peace, stability and multi-party democracy. There should be no foreign interference in this process. The people of Nepal must take their decisions themselves. They have done so in the past and on every occasion have emerged even stronger.

We have full confidence in the wisdom and resilience of the people of Nepal to forge consensus through dialogue and understanding. We are with the people of Nepal in this journey and are ready to provide whatever assistance possible as per the wishes of the people of Nepal.

Distinguished guests, I request you to join me in a toast to:

- The good health and personal well-being of the Prime Minister of Nepal Dr. Baburam Bhattarai and Madam Hishila Yami,

- The continued progress and prosperity of the friendly people of Nepal;

- And everlasting friendship between India and Nepal.

Posted by Editor on October 22, 2011 7:49 PM


http://pib.nic.in/newsite/erelease.aspx?relid=76809
Ministry of Finance
22-October, 2011 16:11 IST

Finance Minister of Nepal Calls on Union Finance Minister Shri Pranab Mukherjee Who in Turn Assures Full Cooperation of India in Building-Up Various Projects in Nepal

The Union Finance Minister Shri Pranab Mukherjee assured the Finance Minister of Nepal Mr. Barsha Man Pun of India’s full cooperation and support in building-up various projects in Nepal. Shri Mukherjee gave this assurance when Mr. Pun called on him in his office here today. Shri Mukherjee asked his Nepalese counterpart only to prioritize these projects so that they could be taken-up accordingly.

The Finance Minister Shri Mukherjee said that construction work on building Integrated Check posts on Indo–Nepal border has already started on Indian side and asked Mr. Pun to get it expedited on Nepal side as well. He said that these check posts once operational would help in both i.e. in expediting the customs clearances as well as immigration clearances in an efficient manner. Shri Mukherjee said that Bilateral Investment Promotion Agreement (BIPA) signed between two countries yesterday would also help in providing necessary institutional framework for the investors from both sides. However, Shri Mukherjee asked Mr. Pun to ensure safety and security of Indian businessmen visiting Nepal for promoting trade and investment between two countries.

The Finance Minister of Nepal Mr. Pun assured Shri Mukherjee about the safety and security of Indian businessmen visiting Nepal. He sought support of the Finance Minister Shri Mukherjee in completing various projects in Nepal. He also assured that finalization of DTAA between two countries would also be got expedited. He thanked Shri Mukherjee for all his support to Nepal and invited him to visit Kathmandu at the earliest.

Shri Mukherjee thanked Mr. Pun for his invitation and again assured the support of India in best possible manner.

DSM/SS (Release ID: 76809)


Full Text of Joint Press Statement on Visit of PM of Nepal to India
Posted on Myrepublica.com on October 23, 2011

The Rt. Hon. Prime Minister of Nepal, Dr. Baburam Bhattarai accompanied by his spouse, Hon. Ms. Hisila Yami paid an official visit to India from October 20-23, 2011 at the invitation of Dr. Man Mohan Singh, Prime Minister of India. The Prime Minister of Nepal was accompanied by Hon. Mr. Narayan Kaji Shrestha "Prakash", Deputy Prime Minister and Minister for Foreign Affairs, Hon. Mr. Jaya Prakash Prasad Gupta, Minister for Information and Communications, Hon. Mr. Hridayesh Tripathi, Minister for Physical Planning and Works, Hon. Mr. Rajendra Mahato, Minister for Health and Population, Hon. Mr. Barsha Man Pun, Minister for Finance, Hon. Mr. Mahendra Prasad Yadav, Minister for Irrigation, Hon. Mr. Anil Kumar Jha, Minister for Industry, Hon. Mr. Deependra Bahadur Chhetri, Vice-Chairman, National Planning Commission, Hon. Mr. Hari Roka, Member, Legislature-Parliament, Hon. Mr. Om Prakash Yadav, Member, Legislature-Parliament and senior officials of the Government of Nepal.

2. The Prime Minister of Nepal called on the President and the Vice-President of India. Shri S.M. Krishna, Minister of External Affairs, Shri Pranab Mukherjee, Minister of Finance, Shri P. Chidambaram, Minister of Home Affairs, Shri A. K. Antony, Minister of Defense, Smt. Sushma Swaraj, Leader of Opposition and other Indian dignitaries called on the Prime Minister of Nepal.

3. The Prime Minister of Nepal had a meeting with the Prime Minister of India followed by delegation-level talks. During the talks, the two Prime Ministers reviewed the state of bilateral relations and exchanged views on ways and means to further expand and consolidate the close, multi-faceted relations between the two countries. The talks were held in an atmosphere of utmost cordiality and warmth. The Prime Minister of India and Smt. Gursharan Kaur hosted a dinner in honor of the Prime Minister of Nepal and Mrs. Hisila Yami.

4. The Prime Minister of Nepal elucidated on the peace process and constitution drafting. He appreciated and expressed thanks to the Government and the people of India for their support and expressed hope to receive India’s goodwill and understanding for Nepal’s peace process and continued cooperation for its socio-economic development. The Prime Minister of Nepal also highlighted his ongoing efforts for consensus building on the peace process of Nepal. The Prime Minister of India expressed full support for efforts to build consensus on the peace process and constitution drafting to pave way for Nepal’s transition to an inclusive, multiparty democracy in Nepal.

5. The two Prime Ministers directed that all the bilateral institutional mechanisms be revitalized and convened regularly. They directed early meetings of the Joint Ministerial Commission on Water Resources and Home Secretaries.

6. The Nepalese side assured that the Government of Nepal would take further measures for creating and promoting an investor-friendly and enabling business environment to encourage Indian public and private sector investments in Nepal. The two Prime Ministers directed the Inter-Governmental Committee (IGC) of Commerce Secretaries to convene at the earliest with a view to identifying ways and means of further strengthening mutually beneficial trade and investment ties between the two countries and look into all trade and transit related issues, including trade imbalance, remaining issues of Trade Treaty, Nepal’s request for waiver of 4% additional customs duty, issue of fixation of additional one-time lock by Indian customs between Kolkata/Haldia Port and Nepal and operationalisation of Vishakhapatnam port for Nepal’s trade. With regard to the issue of Duty Refund Procedure (DRP) under the new Treaty of Trade, the Indian side assured that the necessary notification in this regard is expected to be issued shortly.

7. The two sides directed the relevant officials to hold comprehensive review of the Rail Services Agreement at the earliest to enhance cooperation in the field of railways and explore movement of additional stream of wagons to/from Birgunj ICD in Nepal. The two sides agreed to expeditiously complete procedural requirements for operationalisation of rail transit facility through Rohanpur-Singhabad and transit between Vishakhapatnam and Nepal.

8. In response to Nepal’s request for increase in the quantum of electricity export to 200 MW to cope with the power deficit during the dry season, the Indian side conveyed readiness to supply maximum electricity possible on existing transmission lines and suggested that technical experts of the two countries should meet to explore the options available for enhancing electricity trade between India and Nepal. With reference to the draft MOU on cross-border interconnection for electric power trade, the Indian side conveyed that it would expeditiously examine the draft.

9. The two sides reiterated that the open border between Nepal and India has greatly facilitated exchanges among the peoples of both countries, and that it is equally important to manage the border effectively and efficiently to control cross-border criminal activities. The two sides discussed security concerns related to the open border between the two countries. The Nepalese side assured that it would not allow its territory to be used for any activity against India and the Indian side also gave the same assurance to the Nepalese side.

10. The two Prime Ministers committed to extend all necessary support to facilitate expeditious completion of construction of roads, rail links and the Integrated Check Posts in the India-Nepal border areas.

11. The Nepalese side requested the Government of India to allow three additional inbound air routes from Janakpur, Bhairahawa and Nepalgunj in view of increased air traffic to and from Nepal and for facilitating international air service from the regional airports of Nepal in cost effective manner. The Indian side proposed a meeting of the civil aviation authorities of Nepal and India to discuss and address various issues in this sector.

12. The Prime Minister of Nepal requested the Prime Minister of India for India’s assistance in implementing priority development projects in Nepal. The Indian side indicated willingness to favorably consider priority development projects in various sectors as requested by Nepal and suggested that these may be reviewed and considered in detail at a meeting of the Joint Commission at the earliest.

13. The Prime Minister of India offered to increase the ITEC slots for Nepal to 200 every year.

14. In presence of the two Prime Ministers, the Agreement on Promotion and Protection of Investments, Agreement for dollar credit line of US$ 250 million between Government of Nepal and Export-Import Bank of India and Memorandum of Understanding regarding Indian grant assistance of Indian currency 1.875 crore for the goiter control program in Nepal were signed.

15. The two Prime Ministers noted with satisfaction that the two sides have considered and reached agreement on the text of the Double Taxation Avoidance Agreement (DTAA) and committed to sign the DTAA at the earliest possible on completion of the respective legal procedures.

16. The two sides expressed concern at the human suffering and loss of lives and property caused by floods and inundation at the border areas during the monsoon and agreed to strengthen coordination and consultation to deal with the problem. They agreed that the Joint Ministerial Commission and Joint Commission on Water Resources should convene at the earliest and discuss the current pressing issues and identify the measures for immediate correction.

17. The two sides agreed to further promote exchange of Parliamentarians.

18. The two sides proposed establishment of an Eminent Persons Group to look into the totality of India-Nepal relations and suggest measures to further expand and consolidate the close, multi-faceted relations between the two countries. The modalities of the proposed Group would be worked out through mutual consultation at the earliest.

19. Both sides noted that the multi faceted and deep rooted relationships between the two countries needed further consolidation and expansion in a forward looking manner to better reflect the current realities. It was in this broader context that the two Prime Ministers agreed to review, adjust and update the 1950 Treaty of Peace and Friendship and other agreements, while giving due recognition to the special features of the bilateral relationship. A High-Level Committee at the level of Foreign Secretaries will be set up for this purpose.

20. The Prime Minister of Nepal addressed a business luncheon meeting jointly organized by ASSOCHAM, CII and FICCI and attended a program at the Jawaharlal Nehru University.

21. The Prime Minister of Nepal also visited Dehradun and visited the State Industrial Development Corporation of Uttarkhand in Haridwar. The Honorable Governor of Uttarkhand hosted a lunch in honor of the Prime Minister.

22. The Prime Minister of Nepal renewed the invitation to the Prime Minister of India to pay an official visit to Nepal at an early date. The Prime Minister of India accepted it with pleasure. The dates of the visit will be decided through diplomatic channels.

New Delhi
October 23, 2011