THE MINISTER OF EXTERNAL AFFAIRS (SHRI S. M. KRISHNA)
(a): The President of Nepal, Dr. Ram Baran Yadav, paid a State Visit to India from February
15-18, 2010 at the invitation of President of India. Discussions were held on issues of mutual
interest and both sides expressed their satisfaction at the state of bilateral relations between
the two countries and resolved to work together to further strengthen relations and enhance
cooperation. The following Agreements and Memoranda of Understanding were signed during the
visit:
(i) Air Services Agreement,
(ii) Memorandum of Understanding on Development of Railway Infrastructure at Five Border
Points along the Indo-Nepal Border,
(iii) Memorandum of Understanding on the Establishment of Nepal-Bharat Maitri Polytechnic
at Hetauda, and
(iv) Memorandum of Understanding on the Establishment of Nepal-Bharat Maitri Sabhagriha
at Birgunj.
(b): Assistance provided to Nepal in the last three years is as follows:
2007-08 2008-09 2009-2010
Project Assistance Rs.100.48 crore Rs.112.53 crores Rs.150 crores
Financial Assistance NIL Rs. 20 crores NIL (Kosi Flood Relief Assistance)
Food Aid NIL NIL NIL
Exact expenditure is being compiled
In addition, the Government of India extended a US$ 100 million Line of Credit to Nepal
in June 2006 for infrastructure development projects as prioritized by Nepal. Government of
India announced extension of a new line of credit of US$ 250 million to the Government of Nepal
during the State Visit of the President of Nepal to India in February, 2010.
Export of 10,000 MT of wheat and upto 15,000 MT of non-basmati rice was allowed by
Government of India in 2008. Similarly, export of 50,000 MT of wheat, 25,000 MT of non-basmati
rice and 10,000 MT of yellow peas dal and additional 200,000 MT of wheat, if required by Nepal,
was approved in 2010.
(c) India has consistently maintained that the peace process and the drafting of the new
Constitution by a duly elected Constituent Assembly has to be Nepali-owned and Nepali-driven
process. Government of India has expressed full support for the peace process and efforts to
bring about economic transformation in Nepal.