Nepal and India have agreed to review, adjust and update the 1950 Treaty of Peace and Friendship and other agreements with a view to consolidating and expanding the multi-faceted and deep-rooted relationships between the two countries in a forward-looking manner to better reflect the current realities.
Nepali Prime Minister Prachanda and his Indian counterpart have revealed this understanding in a joint statement published on Wednesday.
Both the leaders have agreed on “the need to inject new dynamism into the relations between the two countries for a forward looking change in tune with the realities of the time as well as the wishes and aspirations of the people of both the countries.”
The joint statement also states that India has agreed to provide an immediate relief of Rs.200 million for Koshi flood victims in Nepal.
Both the countries have agreed to co-work on megaprojects, especially on hydropower, including development infrastructures.
While in New Delhi, Prime Minister Prachanda had urged Indian investors to confidently invest in Nepal. Formalizing this urge, the joint statement states, “The Nepalese side informed that Government of Nepal will take further necessary measures for the promotion of investor-friendly, enabling business environment to encourage Indian public and private sector investments in Nepal.”
Percussions of the Indo-Nepal understanding reached during Prachanda’s visit to India are yet to be heard in Nepal.
Prime Minister Prachanda has returned home on Thursday after his four-day visit to India.