India would also let Nepal begin exporting up to 60 MW to Bangladesh via India. Also linked was a contract for India to construct the 669 MW Lower Arun Hydro Project. Arun-III, a 900 MW hydroelectric project, is currently under construction in Nepal, while Arun-IV, a 490 MW project, is planned. The 1992 Transit Treaty was also extended by the two parties.
Source: Eurasia Review
Nepal would also have access to India’s internal rivers under the amended pact. The trade of the island nation should increase as a result. In addition, they agreed to build a 50 km petroleum pipeline between Siliguri and Jhapa. A number of cross-border initiatives were essentially inaugurated or had their foundations placed by the two prime ministers.
They also laid the cornerstone for Phase II of the Motihari-Amlekhgunj oil pipeline in addition to flagging off an Indian Railways freight train from Bathnaha to the Nepal Customs yard and opening an integrated check point between Rupaidiha-Nepalgunj and Sunauli-Bhairahawa. The initiatives will strengthen their economies and benefit both parties.
India-Nepal ties took a severe hit in 2015 when a Madeshi border blockade, which was in response to parts in the new Constitution being objected to, caused the economy of Nepal to collapse. In Nepal, the blockade was said to have received unofficial assistance from the Modi administration.
It harmed relations between India and Nepal and led Kathmandu to turn to China. Since then, China’s influence in Nepal’s politics and economy has increased dramatically. The situation only became worse as a result of former prime minister KPS Oli’s mocking of India over the border conflict and other issues. However, the decline in India-Nepal ties started to slow down once the Nepali Congress took office in 2021.
Source: StudyIQ IAS
An improvement in relations may be anticipated as a result of Dahal’s visit and the planned collaboration outlined in the agreements made. However, Nepal has strong anti-Indian sentiments. India cannot escape accountability for the sentiments that Nepali politicians incite in order to achieve their own limited goals. This hatred is maintained by India’s intervention in Nepal’s internal affairs and its haughty behaviour in diplomatic relations with Nepal.
A painting in the new Parliament building that purports to show Akhand Bharat has angered Nepal since it is perceived as reinforcing India’s expansionist aspirations. The MEA has denied these claims and says the picture shows Ashoka’s kingdom.
Infrastructure agreements between states may only go so far in enhancing our relations with Nepal; failing to take into account Nepali concerns can undermine the cooperation envisioned by bilateral accords.
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