PM Narendra Modi signs 10 agreements with Nepal, inaugurates bus service

NEW DELHI: Flagging off the Delhi-Kathmandu bus service, Prime Minister Narendra Modi signed more than 10 agreements with Nepal on Tuesday, showing that India is prepared to go the extra mile for its neighbours. But if Saarc fails to move to the next level, the responsibility will not be India’s.
“We are moving with our neighbours on connectivity, power etc,” said MEA spokesperson Syed Akbaruddin.“The Prime Minister presided over a large number of agreements with Nepal, and we have concluded similar agreements with other neighbours. Our commitment to regional integration is for all to see.” India wants similar agreements through Saarc, but problems with Pakistan may put paid to the efforts.
On touching down in Nepal on Tuesday, the PM also made it clear that India expected Nepal to draft an inclusive Constitution. “I request all political stakeholders to draft the Constitution by early next year as committed through consensus, which will reflect aspirations of all communities, including Madhesis, Pahadis and Maoists ... failing to do so can cause difficulties to Nepal and your difficulty despite our expertise to help you in this field is a matter of sadness,” Modi said.
A number of strategic issues, including defence and security, were discussed during the talks between Modi and Koirala over nearly 40 minutes. Talking about bilateral ties, Modi said, “When we trust each other, we can move forward very quickly.”
“Projects that have been in limbo for 25 years are moving forward. I feel very satisfied,” he said after inaugurating a trauma centre built by India at Kathmandu's Bir Hospital.
The new India-Nepal motor vehicle agreement envisages regular bus services between the two countries, including allowing private vehicles to cross the border, facilitating hassle-free movement of people and promote tourism. But it’s not clear whether a similar Saarc agreement would be cleared.
Initially, bus services will work on three routes: Kathmandu-New Delhi, Kathmandu-Varanasi and Pokhara-New Delhi.
The two countries finalized the $1 billion line of credit announced during the PM’s visit to Kathmandu in August. This will be utilized for hydropower, irrigation and infrastructural development projects. Officials said the LoC will be at a concessional rate of interest of 1% and will, in case of civil works, allow JVs and reduced Indian content requirement of 50%.
India will also help to build a police training academy in Nepal to train over 400 police officers annually. Currently, India trains 350 Nepali police officers every year.
The two countries signed agreements on traditional medicine, tourism and youth affairs for better coordination, even cooperation between stakeholders in both countries to exchange information, marketing of tourist destinations, which may be complementary. “Besides holiday, adventure and mountaineering tourism, immense scope exists in developing spiritual tourist circuits, such as the Buddhist Circuit (Lumbini-Bodh Gaya-Sarnath-Kushinagar).”
At present, India is the largest source of tourists in Nepal with 1,65,815 Indians visiting the country in 2012. Total tourist inflows into Nepal in 2012 was 803,092. After India, China came second with 71,861, followed by Sri Lanka (69,476), USA (48,985), UK (41,294) and Japan (28,642). A new pact was signed to set in place twinning arrangements between Kathmandu-Varanasi, Janakpur-Ayodhya and Lumbini-Bodh Gaya as sister cities.
Modi gifted a sapling from the Bodhi Tree at the Mahabodhi temple in Bodh Gaya to be planted near the Ashoka Pillar at the Maya Devi Temple complex at Lumbini.
Indians travelling to Nepal will now be able to use Indian currency notes of Rs 500 and 1000 denominations. At present, only Rs 100 denomination notes are allowed for Indian visitors, which hampers tourists and remittances alike.