New Delhi, August 21: India has pledged assistance of Rs.20 billion to Nepal for infrastructure projects, Finance Minister Pranab Mukherjee told visiting Nepali Prime Minister Madhav Kumar Nepal.
The Nepali prime minister arrived Monday on a five-day visit to India – his first to the country since assuming office three months ago. He met Prime Minister Manmohan Singh Tuesday and held detailed discussions with him.
Thursday morning, Finance Minister Mukherjee called on Nepal at his suite in Delhi’s Oberoi Hotel.
According to officials, Mukherjee told him that a package of Rs.20 billion worth of financial assistance will be announced to mark the Nepali premier’s visit.
This assistance will basically be a new fund allocation for existing rail and road projects which were stalled. This will also cover beefing up of border infrastructure, including constructing integrated border check-posts.
Commerce and Industry Minister Anand Sharma met his Nepalese counterpart Rajendra Mahato here Wednesday to take forward the proposed Treaty of Trade and Agreement of Cooperation.
Nepal also made a strong pitch for a revised trade treaty and stressed that attracting Indian investment in key areas like roads, infrastructure, energy, education and health topped priority of his government.
‘We are promoting an investment-friendly environment and a liberal trade policy,’ Nepal told Indian business leaders at a function Tuesday.
India is a major investor in Nepal, with over 400 projects and accounting for about 44 percent of Nepal’s foreign investment.
Bilateral trade has jumped from $209.5 million in 1995-96 to over $2 billion this year.
–IANS