Nepal, India sign long-term energy deal, agreement on digital payment

Various matters of mutual interest and issues of the two countries, including energy trade, commerce, and air routes among others, were discussed and agreed upon during the meeting of leaders.

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June 2, 2023

KATHMANDU – Prime Minister Pushpa Kamal Dahal on Thursday held a meeting with his Indian counterpart Narendra Modi at Hyderabad House in New Delhi.

The bilateral meeting, in attendance of the delegations of both countries, was held in the Nilgiri room of the Indian Prime Minister’s State Guest House.

Various matters of mutual interest and issues of the two countries, including energy trade, commerce, and air routes among others, were discussed and agreed upon during the meeting.

Following the bilateral meeting, Dahal and Modi jointly addressed a press conference at Hyderabad House and announced the signing of various agreements and MoUs.

The two prime ministers signed a Memorandum of Understanding on the agreement to extend trade and transit and for the construction of the Siliguri-Jhapa Petroleum Pipeline.

Dahal and Modi jointly laid the foundation for the construction of Sunauli Bhairahawa Integrated Checkpost, a petroleum pipeline from Amlekhganj to Lothar in Chitwan and Gorakhpur-New Butwal 400 KV double circuit transmission line.

Speaking at the press meet, Prime Minister Dahal shared the southern neighbour’s positive indications to Nepal’s request for additional high-altitude entry routes.

“Nepal welcomes India’s positive indication of air entry routes for bilateral flights, which is operationally feasible for ATR aircraft. We request approval of an additional high-altitude entry route from Mahendranagar at an early date,” Dahal said.

Furthermore, Dahal also stated that India had approved near-border flight operations at the Gautam Buddha International Airport, Bhairahawa, through Instrument Landing System (ILS).

Likewise, the Nepalgunj-Rupadia Integrated Checkpost was also inaugurated along with Bathana-Biratnagar Cargo Train.

Nepal and India have also signed a long-term power agreement on selling Nepal’s excess power to the southern neighbour. A project development agreement for the construction of Pukhot-Karnali Hydropower Project and an agreement for the construction of Lower Arun hydropower project under Indian investment was also signed.

Dahal and Modi also signed agreements on digital payment between Nepal and India.

Indian Prime Minister Modi has also organised a luncheon in honour of Dahal.

Earlier on Thursday, Prime Minister Pushpa Kamal Dahal laid a wreath at the cemetery of Mahatma Gandhi in Rajghat, India.

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