NEW DELHI: A 25-year agreement on power purchase, launching of an inter-country digital payment system (like the UPI), and trilateral trade between India, Nepal and Bangladesh are some of the decisions likely to be announced during the upcoming state visit of Nepal’s Prime Minister Pushpa Kamal Dahal (Prachanda) to India next week (May 31 to June 3).
Prachanda will be accompanied by a large delegation including officials from Nepal’s foreign, energy, trade and infrastructure ministries. He is expected to visit Mumbai too, but will arrive in Delhi first where he will meet Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and National Security Advisor Ajit Doval among others. He will also be having interactions with the business community, say sources.
While a joint communique would be issued at the end of the visit, the draft prepared for the visit by the Nepalese government includes increasing two-way air traffic, inter-country digital payment with India for Nepali companies, trilateral electricity trade with Bangladesh, a power purchase agreement between India and Nepal for 25 years, Lower Arun and Phukot Karnali hydropower development project and Amlekhgunj Lothar and Siliguri-Jhapa petroleum pipeline construction agreement.
"More than half a dozen agreements and memoranda of understanding are likely to be signed and announced. The agreements will likely include subscribing to a digital payment mode that would ease cross-border payments using e-wallet and building of bridges in Chandani-Dodhara and the Jhulaghat areas across the Mahakali River in Kanchanpur and Darchula districts respectively," said a source.
Nepal is also likely to put in a request to extend an India-funded petroleum pipeline inside Nepali territory. There could be an agreement on a new petroleum pipeline to be constructed from Siliguri to Jhapa and storage facilities and extension of present Motihari-Amlekhgunj petroleum pipeline to Lothar, Chitwan.
Biratnagar-Bathnaha (India) railway line is said to be nearing completion and a formal announcement about it is expected to be made during the visit. Besides, there is a possibility of India sharing a project report of the Kathmandu-Raxaul railway line.
Nepal is also seeking to expand connectivity with India by air and is looking at India to fly into Bhairahawa airport in Lumbini.
Meanwhile, Nepal is also likely to seek a resolution of the boundary issue.