India and Nepal pressed the reset button on bilateral relations as the government welcomed Prachanda , the new PM of the Himalayan state, and committed to go the extra mile to fulfil Kathmandu's development priorities.
Key Points
The two countries committed that they will "not allow" their territory to be used against each other and also agreed to set up an oversight mechanism to review the progress of economic and development projects on regular basis.
In a joint statement issued by the two sides later, they gave various details related to strengthening of ties.
The two countries signed three agreements for upgrading Terai highways and an additional line of credit for new projects such as Phase-2 of Terai roads, power transmission lines, substations and a polytechnic.
Modi also announced a credit of $750 million for post-earthquake reconstruction, which has been delayed.
India has decided to focus on economic and power projects for the time being. Therefore, three power projects - Pancheswar, Arun III and Upper Karnali - came up for detailed discussions.
The government is expected to come out with a framework policy on cross-border power trade in the coming days, which will make it easier for Nepal to sell power.
Current Affairs 16th August, 2016 Current Affairs Round Up Bullet Points, August, 2016 Current Affairs Round Up Bullet Points, July, 2016
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