Prime Minister Narendra Modi visited Nepal

Prime Minister Narendra Modi concluded two day visit to Nepal on 4 August 2014. During the visit, Prime Minister addressed the Nepalese Parliament. Narendra Modi was welcomed by the guard of honour.

This was the first visit of an Indian Prime Minister to Nepal in 17 years. Modi was assisted with a team of 101 delegates including several ministers accompanying him.

The visit was aimed to forge a new relationship with Nepal and to start a new chapter in bilateral ties that will serve as a model and catalyst for regional partnership.

Narendra Modi made the following announcement during his visit:

•    The Prime Minister gave a HIT formula for Nepal. India wants to help Nepal build highways (H), information highways (I) and transways - transmission lines (T).

•    The Prime Minister announced that India will give Nepal 10000 crore Nepali rupee concessional line of credit, for its development.

•    The Prime Minister announced that he is keen to double power supply to Nepal.

•    The pipelines would be built to help transport oil to Nepal.

•    The scholarships to students from Nepal would be increased.

•    India would help Nepal emerge as a major exporter of herbal medicines.

•    India would also help develop the tourism potential of Nepal, both as a spiritual, and adventure tourism destination.

•    He offered assistance to Nepal in the fields of organic farming, and soil health.

Analysis

One of the prime agendas of the visit would be to speed up negotiations on a power trade between the two countries.

Negotiators were trying to narrow down differences over the power pact aimed at harnessing Nepal's estimated 42000 MW hydro-electric potential to meet domestic needs and also supply India's giant energy-starved economy.

The Himalayan nation currently has an installed capacity of 600 MW as its development has been held back by years of political instability. Nepal is still struggling with the transition to a constitutional republic after the abolition of the monarchy in 2008.

Nepal's relationship with India is also important to contain the rise of China as the strongest power in South Asia.