Nepal PM Deuba's maiden foreign trip begins with India visit on Aug 23

India is set to host Nepalese Prime Minister Sher Bahadur Deuba later this month as part of efforts to step up engagement with the Himalayan nation at a time when China is seeking to increase its influence in the region, including Bhutan. Deuba is expected to begin his five-day visit to India on August 23, his first foreign trip after being elected the prime minister for the fourth time two months ago, according to people aware of the matter.

That Deuba chose India as a destination for his maiden trip abroad reflects close nature of Indo-Nepal ties, they said, amid China's relentless efforts to expand its sphere of political and economic influence in the landlocked Himalayan state, including extension of Belt and Road Initiative (BRI).

A slew of India-assisted development and economic projects will figure high on the agenda during Deuba's trip, said a Nepalese observer, who did not wish to be identified. These include finalisation of a joint detailed project report for the Pancheshwar Multipurpose Project. The trip will provide Deuba, who signed the Indo-Nepal Mahakali Treaty in 1996, an opportunity to discuss with the Indian leadership implementation of the Pancheshwar project, the person said.

According to reports Deuba is also likely to take up the issue of `500 and `1,000 currency notes withdrawn by India in November 2016 as part of the demonetisation drive. As per a directive by RBI, from January 2015 any Nepalese individual visiting India was allowed to have `25,000 in denominations of 500 and 1,000. This will be the third visit by a Nepalese PM to India in less than a year -unprecedented in the recent history of Indo-Nepal ties. Then PM Prachanda visited India in September last year, followed by another trip for the BRICS-BIMSTEC outreach meet in October.