India and Nepal Strengthen Bilateral Relations, Sign Energy Deal, and Discuss Air Routes and Boundary Dispute
In a significant development for the region, Prime Minister Narendra Modi and Nepal’s Prime Minister Pushpa Kamal Dahal ‘Prachanda’ signed a long-term energy deal, allowing Nepal to export power to Bangladesh through enhanced energy trade. The agreement underscores the growing cooperation between the two countries in the energy sector.
During their bilateral meeting, which took place on Thursday, India also addressed Nepal’s long-standing request to open more air routes between the two nations. After Nepal expressed its discomfort, India agreed to study the proposal, indicating a positive response to Nepal’s plea. The additional air routes were a key agenda item for Prime Minister Dahal’s visit to India.
PM Dahal stated, “We discussed Nepal’s request for additional air entry routes. Nepal welcomes India’s positive indication of air-entry routes for bilateral flights. It is operationally feasible for ATR aircraft. We request the approval of a high-altitude additional air-entry route from Mahendranagar at an early date.” While Prime Minister Modi did not explicitly mention the enhancement of air connectivity in his address to the media, Foreign Secretary Vinay Kwatra confirmed that the matter was discussed, and India has decided to deploy a “technical team” to analyze the routes, as it would require opening up India’s airspace for certain cities.
Nepal had been raising concerns over India’s refusal to open more air routes, which impacted the profitability of the two new airports in Bhairahawa and Pokhara. However, Foreign Secretary Kwatra explained that the airspace issue involves the domain commanded by the Air Force, and opening up more routes raises questions about connectivity between different cities in both countries.
One of the reasons India hesitated to open additional air routes was the involvement of Chinese loans and contractors in the construction of the Pokhara and Bhairahawa airports. Diplomatic sources revealed that the operationalization of these airports is crucial for Nepal’s economy as they are designed to attract more tourists from India and China.
During the joint press conference held at Delhi’s Hyderabad House, Prime Minister Modi emphasized that both India and Nepal would work towards taking the bilateral relationship to new heights, making a reference to the Kalapani border dispute. He stated, “We will continue to work to give our relationship the height of the Himalayas. And in this spirit, we will solve all the issues, whether it is the boundary or any other issue.” Prime Minister Dahal echoed the sentiment, urging the resolution of boundary matters through established bilateral diplomatic mechanisms.
Moreover, Nepal and India signed an agreement enabling Nepal to export power to Bangladesh using India’s transmission lines. This move aligns with India’s ‘Neighbour First’ policy, further strengthening regional cooperation. Dahal expressed his appreciation for India’s willingness to facilitate the export of hydropower from Nepal to Bangladesh through India, and it is expected that the export of up to 50 MW of power will commence soon.
In another significant development, India granted Nepal access to inland waterways for the first time in their bilateral ties, promoting enhanced trade opportunities between the two nations. The leaders also inaugurated several projects, including rail connectivity, and unveiled two integrated checkposts at Nepalgunj and Rupaidiha.
Prime Minister Dahal’s visit to India, his fourth as the Prime Minister of Nepal, marks a significant step in strengthening the bilateral relationship between the two neighboring countries. As he concludes his visit and returns to Kathmandu, the outcomes of his discussions and agreements reached during this trip hold promise for further cooperation and collaboration between Nepal and India.
