India and Nepal Sign Four Pacts for Enhanced Trade and Connectivity
India and Nepal have entered into four agreements, which include commitments to long-term power trade and the launch of a satellite. During the joint commission meeting co-chaired by India's External Affairs Minister S Jaishankar and his Nepalese counterpart Narayan Prakash Saud, both countries explored ways to strengthen collaboration in various areas, such as connectivity and trade. This visit marked Jaishankar's first foreign engagement of the year. The discussions encompassed a comprehensive review of the bilateral relationship, economic ties, and initiatives related to land, rail, and air connectivity. Additionally, the meeting delved into cooperative efforts in defence, security, agriculture, energy, and water resources, as highlighted in Jaishankar's post on X.
Four agreements were signed between the two sides, with one specifically focusing on long-term power trade between the two governments. In June 2023, when Nepal Prime Minister Pushpa Kamal Dahal visited New Delhi, an agreement was reached to increase India's purchase of hydropower from Nepal to 10,000 MW over the next decade. Additionally, during the meeting, External Affairs Minister Jaishankar extended the "warm wishes" of Prime Minister Narendra Modi to Prime Minister Dahal.
“Recalled his successful visit to India in June 2023 which has imparted a new momentum to our ties. Discussed the follow-up, including through the Joint Commission Meeting today. India-Nepal friendship is indeed unique and our partnership is moving from strength to strength", Jaishankar posted on X.
A memorandum of understanding (MoU) between India’s NTPC Limited and the Nepal Electricity Authority will focus on cooperation in the development of renewable energy. Another agreement between New Space India Limited (NSIL) and the Nepal Academy of Science and Technology (NAST) will facilitate the launch of the Munal satellite on India’s Polar Satellite Launch Vehicle (PSLV). The fourth agreement between the two governments covers Indian grants for implementing high-impact community development projects.
Furthermore, the two ministers conducted a virtual inauguration of three 132-kV cross-border transmission lines. These included the second circuits of the Raxaul-Parwanipur line, the Kataiya-Kusaha line, and the New Nautanwa-Mainhiya line. Additionally, they observed the handover of the fifth tranche of Indian assistance provided to those affected by the earthquake in the Jajarkot area of Nepal in November 2023.
Jaishankar described the joint commission meeting as "thorough and fruitful," highlighting that discussions encompassed disaster management, tourism, civil aviation, people-to-people and cultural exchanges, as well as the development partnership. In addition to this, he held meetings with Nepal President Ramchandra Paudel, along with former prime ministers Madhav Nepal, KP Sharma Oli, and Sher Bahadur Deuba. The visit to Nepal was made at the invitation of Saud, aiming to co-chair the seventh meeting of the joint commission, established in 1987 as a platform for both foreign ministers to review the bilateral partnership.
