India offers $250m loan to Nepal

NEW DELHI: India has offered $250 million as soft line of credit and offered 20,000 tonnes of rice to Nepal. This is in addition to 50,000 tonnes of wheat and 10,000 tonnes of yellow peas, sources said.

Prime Minister Manmonan Singh on Tuesday held discussions with visiting Nepal President Ram Baran Yadav. The two sides discussed the entire gamut of the relationship — from economic cooperation to the political situation in Nepal.

Sources said Prime Minister Singh expressed the hope that the peace process and the drafting of the Constitution would be completed in time. He also offered India’s assistance in whatever way possible and underlined the “special” and “unique” relationship between the two neighbours. Mr Yadav, in turn, thanked the prime minister for the Indian help, sources said. The Indian side during the meeting has also offered an additional 2,000 tonnes of wheat to Nepal.

After the discussions, India and Nepal signed four agreements, including a new updated air-service agreement, an MOU on development of railway infrastructure at five points along the border and development of a polytechnic in Nepal and the construction of a new convention hall near the India-Nepal border. The air-services pact may increase air traffic includes an ‘open sky’ arrangement in cargo operations and higher number of passenger flights. As far as the soft loan is concerned, India has offered the $250 million through EXIM bank to Nepal.