NEW DELHI: In a bid to support Nepal’s beleaguered peace process and check China’s growing influence, India has decided to pump in crores of rupees into the neighbouring nation’s infrastructure.
On the day Nepal’s Prime Minister Madhav Kumar Nepal started his five-day visit to India, the government at a high-level meeting took a decision to fund three large infrastructure projects, which will increase border connectivity and increase trade between the two countries.
The government quickly pushed through funding for the projects, which include the Integrated Customs Posts project and road and rail projects, to show that India is serious in its efforts to help Nepal through the transitional period.
With the development mantra in mind, the government, which is keen to upgrade the border infrastructure,will put in around Rs 200 crore to set up the first two state-of-the-art integrated customs point along the border at Raxaul-Birganj and Jogbani-Biratnagar.
The decision to set up Integrated Check Posts along the border was taken some time back but will now see actual implementation on the ground. The idea is to set up the ICPs so that trade between the two countries becomes smoother, cutting down on current procedural delays at the border. After the first two sites are set up, the two countries will then look at setting up ICPs at Sunauli-Bhairahawa and Nepalgunj-Nepalgunj points.
Apart from the customs project, the government has also taken the plunge to fund the first phase of the Terai road project at a cost of around Rs 700 crore and set up two rail links worth Rs 700 crore. The Terai road project looks at upgrading around 1,500 km of roads in the Terai region with the first phase covering 657 km of road. Additionally India will also fund a Nepal Police Academy worth Rs 300 crore in what is a capacity building exercise.
These infrastructure projects have been at the conceptual stage for the last couple of years but have not gotten off the ground for one reason or another. By funding road and rail projects worth crores, India hopes to start a new era of cooperation and send a strong message of support to Nepal and its government, which has been struggling to push forward the peace process in the face of Maoist opposition.
Sources pointed out that India’s interest lies only in a stable Nepal. On Wednesday, Prime Minister Manmohan Singh held talks with Mr Nepal and discussed the entire gamut of bilateral ties from economic cooperation to the status of the peace process.
India’s current push for Nepal’s infrastructure also comes in the backdrop of China’s continuing efforts in Nepal. China is currently helping Nepal build a cross border road linking Nepal to the Tibetan Autonomous Area to improve trade and tourism.
China is also a major donor and has put in vast amounts of money into Nepal in various sectors including hydropower, health and even information technology.
The government quickly pushed through funding for the projects, which include the Integrated Customs Posts project and road and rail projects, to show that India is serious in its efforts to help Nepal through the transitional period.
With the development mantra in mind, the government, which is keen to upgrade the border infrastructure,will put in around Rs 200 crore to set up the first two state-of-the-art integrated customs point along the border at Raxaul-Birganj and Jogbani-Biratnagar.
The decision to set up Integrated Check Posts along the border was taken some time back but will now see actual implementation on the ground. The idea is to set up the ICPs so that trade between the two countries becomes smoother, cutting down on current procedural delays at the border. After the first two sites are set up, the two countries will then look at setting up ICPs at Sunauli-Bhairahawa and Nepalgunj-Nepalgunj points.
Apart from the customs project, the government has also taken the plunge to fund the first phase of the Terai road project at a cost of around Rs 700 crore and set up two rail links worth Rs 700 crore. The Terai road project looks at upgrading around 1,500 km of roads in the Terai region with the first phase covering 657 km of road. Additionally India will also fund a Nepal Police Academy worth Rs 300 crore in what is a capacity building exercise.
These infrastructure projects have been at the conceptual stage for the last couple of years but have not gotten off the ground for one reason or another. By funding road and rail projects worth crores, India hopes to start a new era of cooperation and send a strong message of support to Nepal and its government, which has been struggling to push forward the peace process in the face of Maoist opposition.
Sources pointed out that India’s interest lies only in a stable Nepal. On Wednesday, Prime Minister Manmohan Singh held talks with Mr Nepal and discussed the entire gamut of bilateral ties from economic cooperation to the status of the peace process.
India’s current push for Nepal’s infrastructure also comes in the backdrop of China’s continuing efforts in Nepal. China is currently helping Nepal build a cross border road linking Nepal to the Tibetan Autonomous Area to improve trade and tourism.
China is also a major donor and has put in vast amounts of money into Nepal in various sectors including hydropower, health and even information technology.
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