New Delhi, July 27:

Indian External Minister of State E Ahmed today said the restoration of democracy in Nepal had spawned the opportunity for a qualitative promotion in Indo-Nepal relations.

A positive change has already in India’s relations with Nepal, Ahmed said, adding that Prime Minister Dr Manmohan Singh told Nepalese Prime Minister Girija Prasad Koirala’s during the latter’s visit to India from June 6 to 9 that India was ready to extend all possible cooperation to Nepal. Ahmed was replying to a query by MP Shobhana Bharatiya in the Rajya Sabha.

Nepal is committed to expedite its economic development and in this regard India has shown interest in extending cooperation on a priority basis and in the restoration of democracy, he added. Regarding bilateral economic cooperation agreements made during PM Koirala’s visit, Ahmed told the parliament that India had agreed to provide IRs 1 billion as budgetary supplement, a concessional loan of IRs 7.5 billion, and increment from IRs 650 million to IRs 1 billion which is provided to Nepal every year as assistance.