India-Nepal relationship: PM Prachanda’s visit provides fresh momentum to bilateral engagement between two neighbours

Nepal Prime Minister Pushpa Kamal Dahal alias Prachanda undertook a four-day (May 31 to 3) official visit to India at the invitation of Prime Minister Narendra Modi. This was the first foreign visit by Nepal PM Prachanda since assuming power in December 2022. Significance of the visit The visit was much needed given the contemporary geopolitical and geostrategic developments in the Himalayas. This provided an opportunity for both countries to discuss and address common challenges or issues of mutual interest, such as economic cooperation, regional security, promotion of sub-regionalism in South Asia, and attracting investment between the two countries. During Prachanda’s visit, six projects were inaugurated and they included handing over of the Kurtha-Bijalpur railway line; operation of the cargo railway between Jogbani in India and Biratnagar in Nepal; laying the foundation of Bhairahawa-Sunauli integrated check post; inauguration of Nepalgunj-Rupaidiha integrated check post; foundation of the second phase of Motihari-Amlekhgunj petroleum pipeline construction and the Butwal-Gorakhpur 400 KV trans-border transmission line. The Final Location Survey report of the Raxaul-Kathmandu rail link was also handed over to the Nepali side during Prachanda’s visit. India also agreed to Nepal’s requests for the training and capacity building of Nepali rail officials in the Indian Railway institutes and provision of a one-time grant for maintenance of the railway infrastructure for Jaynagar-Kurtha rail section that was flagged off by the Prime Ministers of India and Nepal in April 2022. Besides, seven agreements were signed between the two countries during the Nepal Prime Minister’s visit and these agreements included Nepal-India Transit Treaty; an MoU regarding the construction of petroleum infrastructure; an MoU relating to the Dodhara-Chandani Integrated Check Post and Dry Port; an MoU regarding Fukot-Karnali 480 MW hydropower project development; 669 MW Lower Arun Hydropower Development Project Agreement; an MoU relating to trans-national electronic payment between National Clearing House Ltd, Nepal and National Payment Company Ltd, India and MoU between Foreign Affairs Study Academy of Nepal and Sushma Swaraj Institute of Foreign Service, India. India also decided to fund Bheri Corridor, Nijgadh-Inaruwa and Gandak-Nepalgunj transmission lines and associated sub-stations under Line of Credit of $679.8 million. Outcome of the visit Prachanda’s visit to India was the 6th Prime Ministerial level visit from Nepal since the promulgation of the Constitution in the Himalayan country in September 2015. In terms of quantity and quality, the recent visit was the most successful on several counts. First, the highest numbers of infrastructure and physical connectivity projects were remotely inaugurated by both Prime Ministers, and seven documents were exchanged on infrastructure, transit trade, digital connectivity, and energy cooperation. Second, for the first time in the India-Nepal hydroelectricity trade, the Prime Minister of India stated that “India aims to increase the quantum of hydropower imports from Nepal to India to 10,000 MW in the next 10 years”. Third, India agreed to facilitate the first trilateral power transaction from Nepal to Bangladesh via India for up to 40 MW of power, which was a long pending demand of these countries. Four, the just-revised Treaty of Transit would enhance the faster, smoother, and more effective third-country trade of Nepal by access to inland waterways of India for the first time. Fifth, India has assured to strengthen multi-sectoral connectivity projects under the ‘HIT formula’ and resolve the air-connectivity issues. And lastly, most importantly, both leaders expressed their sincere effort toward resolving the border demarcation and border disputes through dialogue by the designated mechanisms. Another important part of the visit was PM Prachanda’s visit to Indore and Mahakaleshwar Temple in Ujjain, Madhya Pradesh. Although opposition parties in Nepal questioned this visit, the Nepal PM did not do anything wrong by undertaking cultural trips during the visit. First, in 2022, then Prime Minister Deuba undertook a cultural visit to Varanasi. Most importantly, there is evidence to show that many South Asian leaders undertook cultural trips on the sidelines of bilateral and multilateral visits in the sub-continent. For example, Sri Lankan President Rajapaksa, and Bhutanese Prime Minister Dr. Lotay Tshering visited Bodh Gaya. Bangladeshi Prime Minister Sheikh Hasina visited Moinuddin Chishti in Rajasthan. Similarly, Pakistani Prime Minister Nawaz Sharif visited Jama Masjid in Delhi during the official visit. Therefore, cultural issues have been a part and parcel of bilateral trips in the sub-continent. Moreover, Madhya Pradesh holds a special relationship with Nepal given the presence of over two lakh Nepali diaspora and strong commercial interests between Nepal and the major cities of Madhya Pradesh. Special relationship The frequent high-level visits indicated an upward trajectory in the bilateral relationship after a phase of misunderstanding in the relationship due to border row and other issues. Earlier, PM Modi paid a day-long state visit to Lumbini, Nepal, on May 16, 2022. That was his first official visit to Nepal after assuming office for the second time and his fifth visit to Nepal in the last nine years in office. PM Modi chose Nepal as the first port of call to visit in the neighborhood after two years of restrictions due to COVID-19. That indicated India’s attempts to give a new thrust to its partnership with Nepal under the ‘neighborhood first’ policy. The India–Nepal Treaty of Peace and Friendship of 1950 and people-to-people connectivity have remained a strong pillar of relationship between the two countries. The Treaty has facilitated special arrangements like open borders, security cooperation, and economic connectivity. India has been the largest development and trading partner of Nepal. Conclusion Nepal PM Prachanda’s four-day visit was well received by the people of both countries. During the joint press statement, both leaders acknowledged that they had a very fruitful discussion on the wide-ranging issues that pertain to mutual benefits. Prime Minister Modi categorically said, “Our partnership has truly been a HIT." They, in fact, reviewed the progress in the implementation of Indian projects in Nepal and also agreed to accelerate, further deepen and facilitate trade, energy, infrastructure, investment, and connectivity linkages between the two nations. ***The writer is a Research Fellow at the MP-IDSA, New Delhi; views expressed are personal.