After doles from China, India set to woo Nepal with economic cooperation

Two key infrastructure projects, signalling India’s eagerness for economic cooperation with Nepal, are set to move forward during the visit of Nepal’s Prime Minister Sher Bahadur Deuba to India next week, days after Beijing enhanced its financial assistance to the Himalayan country.

The visit comes amidst a border standoff between India and China in Doklam plateau in Bhutan, and the two Asian powers are seeking support from countries in the region.

According to Indian officials, a wide range of issues will be discussed when the visiting leader meets Prime Minister Narendra Modi, which will reflect “India’s special relationship with Nepal” in “every aspect”.

“Infrastructure, LPG supply, hydropower, trade and connectivity are the major areas the two countries are focussing on,” officials said.

An MoU for building a bridge over the Mechi river is expected during the visit. India’s national highways infrastructure development corporation limited has proposed to build a 0.675km long bridge that connects Bhadrapur in Nepal with Galgalia in Bihar. The estimated cost of the project is ₹140 crore.

Discussion on expediting the 5600-MW Pancheshwar multi-purpose power project is also likely to figure in these talks.

India’s Union water resources ministry will build the ₹30,000 crore dam on river Mahakali on the Indo-Nepal border. The project comprises a dam of 315m and two underground power houses. On the India side, the dam is located in Uttarakhand and the state will get 13% of the power generated.

“Both countries had agreed on expediting the project in 2014 during Prime Minister Narendra Modi’s visit to Nepal. Not much has happened since then...” said a government official.