KATHMANDU, JUNE 1

Prime Minister Pushpa Kamal Dahal today said in New Delhi that Nepal had reached agreement with India on long-term power trade under which India would import 10,000 MW of power from Nepal in the next 10 years.

Speaking at a joint press conference in Hyderabad House in the Indian Capital, PM Modi said the agreement was a major development in enhancing cooperation in this area based on the Joint Vision Statement that the two prime ministers issued in April 2022.

PM Dahal appreciated India's import of 452 MW of power from Nepal and requested PM Modi to approve import of additional 1,200 megawatts of power from Nepal including from the 456 MW Upper Tamakoshi. PM Dahal thanked PM Modi for the positive response.

'I also appreciate India's willingness to facilitate the export of hydropower from Nepal to Bangladesh through India.

We have agreed that export of up to 50 MW of power from Nepal to Bangladesh via India will commence soon and the three countries will work out an agreement to this effect,' the PM added.

The Project Development Agreement for the development of 669 MW Lower Arun Hydropower Project and MoU on development of 480 MW Phukot Karnali Hydropower project were also signed.

These projects provide a fresh momentum to power sector development and cross-border trade.PM Dahal said he and PM Modi agreed to advance the Pancheswar Multi-purpose Project by concluding the DPR within three months. For this, the two PMs have directed their officials to expedite bilateral discussions. The modalities of Implementation will be concluded within one year after approval of DPR by the two governments.

PM Dahal welcomed the construction of the Tanakpur link canal and agreed that water would be released from Tanakpur barrage to irrigation command area of Nepal through this canal in a phasewise manner.

'We reviewed the progress in implementation of hydroelectricity projects in Nepal and construction of cross-border transmission lines. It is one of the most important elements of our economic partnership,' said PM Dahal, adding that Nepal's hydropower would not only contribute to 'our economies and energy security, but also serve as an important factor in realising our climate ambition'.

PM Dahal requested PM Modi for non-reciprocal market access to India with more flexible and easy quarantine procedures for Nepal's agricultural products and simplified Rules of Origin for other products.

PM Dahal also said the establishment of well-equipped testing labs along the major border points and formalisation of arrangement for mutual recognition of test certificates were discussed. 'I requested Prime Minister Modi to lift the anti-dumping duty on Nepali jute products,' PM Dahal added.

'Nepal welcomes India's positive indication of air-entry route for bilateral flights. It is operationally feasible for ATR aircraft,' the PM said and added, 'We request for approval of high-altitude additional air-entry route from Mahendranagar at an early date. We appreciate India's approval for near-border flight operation in Gautam Buddha international Airport in Bhairahawa, Nepal through publishing ILS procedure in the AIP to enhance safety and efficiency of flight operation. We would like to have regular flights from Nepal's newly built internationalairports of Bhairahawa and Pokhara to and from various cities of India.'

PM Dahal said he and Prime Minister Modi discussed the boundary matters and he had urged Prime Minister Modi to resolve the boundary matters through the established bilateral diplomatic mechanisms.

PM Dahal said relations between Nepal and India were age-old and multifaceted and they stood on the solid foundation built, on the one hand, by the rich tradition of civilisational, cultural scoio-economic linkages and, on the other, by the two countries' firm commitment to the time-tested principles of sovereign equality, mutual respect, understanding, and cooperation.

Speaking at a press conference in Hyderabad House in New Delhi, PM Dahal said: 'We made an extensive review of the progress in our relations and renewed our commitments to further strengthen these relations and cooperation.'

Dahal appreciated Modi's 'neighbourhood first' policy.

The PM said in the bilateral meeting today, both sides discussed ways to further strengthen cooperation in diverse areas including trade, transit, investment, hydropower development, power trade, irrigation, agriculture, connectivity, including air entry routes, railways, bridges, transmission lines, expansion of petroleum pipelines, construction of Integrated Check Posts as well as cultural and people-to-people contacts.

The PM also extended cordial invitation to PM Modi to visit Nepal.

A version of this article appears in the print on June 2, 2023, of The Himalayan Times.