Rajya Sabha
The Minister of State in the Ministry of External Affairs, Shri E. Ahamed informed the Rajya Sabha today that the restoration of democracy in Nepal has provided a historic opportunity for a qualitative enhancement of our bilateral relations with Nepal. During the visit of His Exellency G.P. Koirala, Prime Minister of Nepal to India from June 6-9, 2006, our Prime Minister conveyed India’s readiness to render all possible assistance to Nepal for accelerating economic rehabilitation and development, in accordance with the priorities and wishes of the Government of Nepal. Government of India, interalia, expressed its willingness to extend immediately a one-time grant of Rs.100 crore to the budget of Government of Nepal; offered a soft credit line of US$ 100 million for the execution of infrastructure development projects; enhanced its ‘Aid to Nepal’ budget for the current financial year from 65 crore to Rs.150 crore; and waived the dues outstanding as on June 9, 2006 owed by the Government of Nepal to the Government of India on account of defence purchases.
This information was given by the Minister in reply to a question by Smt. Shobhana Bhartia.
AK/NSD/MK.
(Release ID :19197)