Giving a boost to bilateral ties, India will undertake developmental activities worth over Rs 837 crore in Nepal, under four pacts signed between the two countries in fields like infrastructure, power and science and technology.
One of the major projects that India will undertake entails construction of a 680-km long highway in Terai region of Nepal at the cost of Rs 810 crore.
The MoU on Strengthening of Road Infrastructure in Terai area was signed by External Affairs Minister S M Krishna, who is on a three-day visit here, and Nepalese Deputy Prime Minister and Foreign Minister Sujata Koirala here on Friday.
The road will improve connectivity within the region as well as its link with India.
In presence of Mr. Krishna and Ms. Koirala, officials of the two countries also signed an MoU in power sector under which five villages of Nepal would be electrified at the cost of Rs 6.3 crore.
India is already providing 20 MW of power and decided to give 30 MW more. Nepal is seeking another 30 MW which India has agreed to provide.
An agreement between Nepal Stock Exchange Limited (NPSE) and Central Depository Services (India) was also signed under which India will assist Nepal in setting up a Central Depository and Clearing and Settlement System at the cost of Rs 5.75 crore.
The two sides also signed an MoU for establishment of Nepal-Bharat Maitri Science Learning Centre in Khumaltar, Lalitpur at the cost of Rs 15.5 crore.
Meanwhile, M.r Krishna, who was supposed to go the southern Nepalese town of Birgunj to inaugurate the Integrated Check Post, could not visit the region on Saturday due to bad weather.
The Rs 240-crore project, in which India and Nepal have 50 per cent stake each, is aimed at easier facilitation of movement of goods.
The two countries were also expected to sign an MoU wherein India would build a police academy in Nepal at the cost of around Rs 500 crore. It, however, could not fructify, with officials citing “technical reasons” for it.
The failure to sign this pact, however, may be seen in the context of Maoists’ opposition to India helping in building capacities of Nepalese security forces.