The visit of Nepalese prime Minister is the major thawing event that happened recently between India and Nepal. Prime Minister Oli is making this visit first time after Nepal adopted constitution last year. There have been certain elements that created friction between two countries after the adoption of constitution in recent times. However with this visit both the parties are hoping for a consensus and forge a new relationship so as to be beneficial for people of both the countries.
One of the major issue that was pressing between India and Nepal was addressing the concerns of Indian origin Madehsi people. The newly elected government has taken considerable steps in this regard by promugulation of two amendments in December and also by setting up a committee that will look in to the issue of division of provinces newly which is aimed at addressing the concerns of Madhesi people. India is of the view that it should hold discussion among the aggravated communities so that their voices are accommodated and thus create peace and tranquillity in the border without any law and order problems which affects daily life of the people leaving in the Tarai region (Madhesi).
India has promised to extend its monetary support in terms of grants and soft loans to the tune of 2 billion dollars to Nepal, recognising the untapped potential and infrastructure loopholes especially after the earth quake. India has also been advocating for boosting hydroelectricity production in Nepal which is under performing. Nepal is generating only 800 MW of hydro electricity against its potential of 43000MW. With so much gap in Nepal’s hydroelectricity sector India sees this as huge investment opportunities for Indian companies. 2 Indian companies have already signed agreements for hydroelectricity power generation and focus now shifts on early implementation of these projects.
India will also have discussions with Nepal having close connections with China, as China has constructed roads and railways right from Chinese side of Tibet to Nepal and also planning for other infrastructures projects. However India does not have any issues with Nepal’s proximity to china as far its security interests intact in her borders.
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