Aid, Maoists to top Nepal PM’s agenda

NEW DELHI: India’s economic aid package for Nepal will be the highlight of Nepal Prime Minister Girija Prasad Koirala trip to India from June 6 to 9.

This will be Mr Koirala’s first foreign visit since he became Prime Minister He has been invited by Prime Minister Manmohan Singh. Mr Koirala then leaves for Bangkok on July 9 for medical treatment there.

The economic aid package is expected to be the highlight of the visit as Nepal is facing acute financial crisis with a budget deficit of Rs 320 crore and is in dire need of cash flow and aid at this stage.

During a meeting with international aid donors and India, Nepal had chalked out its immediate need for a direct cash flow to make up its enourmous budget deficit. India is likely to help out along with other donors to help the Nepalese government overcome the deficit.

The economic package is expected to be a multi dimensional one ranging from direct cash aid to help in various infrastructural projects to more access to markets here.

Mr Koirala, who is accompanied by a business delegation and ministers from his Cabinet including Deputy Prime Minister Khadga Prasad Oli and Finance Minister Ram Saran Mahat, will also discuss the latest political developments with Mr Manmohan Singh. `` The visit will provide the opportunity for discussing the entire gamut of issues between our two countries,’’ a Ministry of External Affairs statement said.

Some of the issues that are likely to be discussed between Mr Singh and Mr Koirala, who was sworn in as the Prime Minister of Nepal on April 30, is the ongoing negotiations between the Nepalese government and the Maoists and the issue of UN intervention in Nepal. India is particularly worried about the integration of the Maoists into the political mainstream and wants the Maoists to lay down their arms before that happens.

The Nepalese government and the Maoists had also decided in their first round of talks to bring in the United Nations to monitor the ceasefire. This issue is likely to be discussed as well as India till now has been hesitant in endorsing UN intervention.

India has had close ties with Nepal and economic cooperation has always been high on the agenda of the two countries. India in the past has helped Nepal in the development of aviation, road, rail and post and communication sectors.

India has already committed crores to ongoing infratsuctural projects that include setting up hospitals and schools.