Press Release of 2003

Come Together – Atal Bihari Vajpayee (December 18, 2003)
H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function held in Gauriganj today (December 17, 2003)
The Embassy of India has seen reports concerning delay in communicating agrément in respect of H.E. Mr. Karna Dhoj Adhikary, Nepal’s Ambassador-designate to India.(December 10, 2003)
H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function (December 8, 2003)
Message of the Hon’ble Prime Minister of India, Shri A. B. Vajpayee on the occasion of eighteenth anniversary of founding of the SAARC (December 8, 2003)
Kathak workshop at Padma Kanya Campus (November 2, 2003)
Catch the Rhythm and Beat of Kathak (November 2, 2003)
Bhojpuri play in Kathmandu
(October 13, 2003)
Visit of NDC team from India to Nepal (September 16, 2003)
There have been a number of media reports lately on the delay in the operationalization of the ICD at Birgunj (18th September, 2003)
H.E. Shyam Saran, Ambassador of India’s Opening Statement at the Reporters’ Club (13th August, 2003
The second meeting of High Level India-Nepal Technical Committee (13th August, 2003)
INDIAN ASSISTANCE OF RS. 20.73 MILLION FOR UPGRADATION OF THE PHYSICAL INFRASTRUCTURE OF SHREE DURGA JANATA MADHYAMIK VIDYALAYA, BABARGANJ, SARLAHI (1st August, 2003)
Indian Assistance of Rs. 757 Million For a 200-Bed Emergency and Trauma Centre (30th July, 2003)
The Excise Duty on Indian manufactured goods imported into Nepal is refunded regularly. (19th July, 2003)
Nepali media concerning problems caused by floods in areas close to the India-Nepal border. (18th July, 2003)
Hon’ble Prime Minister of India, Shri Atal Bihari Vajpayee’s message to the Right Hon’ble Prime Minister of Nepal (7th June, 2003)
16th Indian Ex-servicemen Welfare Organisation in Nepal (IEWON) (7th June, 2003)
Ambassador of India, HE Mr. Shyam Saran will inaugurate the Library of the Nepal Art Council (27th May, 2003)
India has extended the facility of Duty Exemption Pass Book Scheme (27th May, 2003)
General N C Vij, PVSM, UYSM, AVSM, ADC, Chief of the Army Staff, Indian Army
(25th April, 2003)
Gen NC Vij, Chief of Army Staff, Indian Army visited No 3 Brigade HQ of RNA at Pokhara (24th April, 2003)
Gen NC Vij, PVSM, UYSM, AVSM, ADC, Chief of Army Staff, Indian Army (23rd April, 2003)
Mahalisagar - Reconstruction, NOT "NEW DAM" (18 March, 2003)
One month extension for Vanaspati exports to India (February 28, 2003)
“Golden Jubilee Scholarship Scheme” (February 28, 2003)
INDIAN ASSISTANCE FOR POLYTECHNIC IN BIRATNAGAR (February 17, 2003)
Official level India-Nepal talks on (i) a Railway Agreement and (ii) Passenger Traffic Agreement (February 17, 2003)
The third round of meetings between Government of India and His Majesty’s Government of Nepal (February 13, 2003)
INDIAN ASSISTANCE OF RUPEES 540 LAKH FOR SOLAR ELECTRIFICATION OF VILLAGES (January 1, 2003)



Come Together – Atal Bihari Vajpayee

(Edited text of the Prime Minister’s keynote speech delivered at the first Hindustan Times Leadership Initiative on the Peace Dividend – Progress for India and South Asia, in New Delhi on December 12)

When the Hindustan Times Leadership Initiative invited me to this conference, what really attracted me was the powerful imagery of the peace dividend as the engine of progress in our region. At the same time, I must confess to some sadness that — over half-a-century after all the countries of our region attained independence — this truth still needs to be emphasised.

The peace dividend for South Asia is the creation of new hope and opportunity for its billion-and-a-half people. We need no stronger justification for peace than this simple statement. The investment inputs required to reap this dividend are pragmatic politics, rational economics and popular participation. There can be no argument about our inherent advantages, common interests and complementary strengths, which present a tremendous opportunity for our region to realise its full potential.

First and foremost, our rich and varied human resources. Our citizens have created waves around the world with their technical, financial and managerial expertise. Their energies and talents can find greater application in regional cooperative enterprises. Second, our populations are younger than the world average, and will therefore constitute an increasing proportion of the global workforce in the future. Third, our technological advances have put us at the vanguard of today’s knowledge economy, enabling us to accelerate our development process.

Fourth, the size and increasing purchasing power of our collective market create economies of scale for cost-effective production. Fifth, efficient exploitation of our synergies can vastly enhance intra-regional trade, even as we work towards a rule-based international trading regime. Sixth, the region has massive untapped capacities for hydropower and unexploited hydrocarbons, which can more than meet its huge energy deficit.

Seventh, the rich diversity of our bio-resources — in the Himalayan region and elsewhere — are yet to be exploited for our common benefit. Eighth, our combined political weight and economic strength can give us considerable leverage in pursuing our shared objective for a cooperative multi-polar world order.

The peace dividend lies in converting this exciting potential into vibrant reality. Our region is heir to a centuries-old tradition of tolerance, pluralism and creative interaction. We need to recapture this ethos in the modern context. In the post-Cold War world of globalisation, countries around the world are increasingly focusing on regional economics. Political disputes have been resolved diplomatically or quietly deferred for tackling at a more opportune time. Conflict has given way to cooperation; dialogue moderates differences. There is a clear recognition that hostility only stunts economies, inhibits trade and retards progress.

This realisation has dawned not only in the developed world, but also in developing regions that have experienced bitter differences and violent conflicts in the past. It encompasses Mercosur and the Andean Pact. COMESA and SADC, NAFTA and APEC. Nearer home, we have the outstanding example of ASEAN. South Asia needs the wisdom to heed these lessons.

By most estimates trade within regions accounts for nearly three-fourths of global trade. Yet, in spite of our geographical proximity, shared economic characteristics and similar development infrastructure intra-South Asia trade is under 5 per cent of our total foreign trade. We must discard the myth that, because of the asymmetries in our economies, the smaller countries do not benefit from closer economic integration within South Asia. Our free trade agreements with Nepal and Sri Lanka have resulted in narrowing the trade deficit of both these countries with India. In fact, the success of the India-Sri Lanka Free Trade Agreement has inspired us to expand its scope to cover services and investment in a comprehensive economic partnership agreement.

Energy is one area with the greatest promise of mutually enriching partnerships. Nepal and Bhutan today have an estimated potential of 100,000 MW of environmentally clean hydropower. Bangladesh has similarly promising reserves of natural gas. They need to sell these energy sources. India is the only viable buyer and its energy demands are expanding exponentially. There is obvious scope for win-win arrangements. The hydroelectric projects in Bhutan illustrate this dramatically. Bhutan’s per capita income of $ 600 today is expected to double by the end of 2005, when the 1,020 megawatt Tala power plant is completed....

....Our most important common war today is against poverty, disease, hunger and underdevelopment. We can share experiences and promote intra-regional linkages for economic and social development. A small, but significant, beginning has been made by our SMRC Experts Group on Poverty Alleviation. The group, drawn from all SMRC countries, has extensively documented best practices in poverty alleviation programmes across the region. It has made detailed recommendations for regional dissemination of information on these practices and for regional capacity building. We have to show dedication in implementation of these recommendations and multiply such
examples of regional experience sharing.

As we develop greater economic stakes in each other, we can put aside mistrust and dispel unwarranted suspicions. We will also develop mutual sensitivity to each other’s concern and promote more of our common interests. If we provide legitimate avenues of free commercial interaction, we can eradicate the black market and underground trade. We could jointly tackle smuggling, drug trafficking, money laundering and other trans-national crimes, which today flourish in our region because of our mutual rivalries and inadequate coordination. Once we reach that stage, we would not be far from mutual security cooperation, open borders and even a single currency.

If this seems unrealistic and utopian, perhaps we are being unnecessarily cynical. Let us remember that the world did not anticipate the sudden end to the Cold War or the collapse of the Berlin Wall. No one thought apartheid South Africa could be transformed bloodlessly into Mandela’s Rainbow Country. Not many political analysts would have predicted that the hostile suspicion between Russia and China could be converted in such a short time into a strategic partnership. Each one of these developments flowed from objective factors in the global environment, but actually occurred because of some enlightened and responsible decisions by people at the helm of affairs.

I would suggest that the demands of globalisation and the aspirations of our people provide the objective bases for our energetic pursuit of a harmoniously integrated South Asia. Our people, business and organisation are waiting to interact more closely with each other. This includes producers and consumers, investors and markets, doctors and patients, artists and audiences, students and universities. They are all part of the supply and demand dynamics of a vast subcontinent. They see the unexploited potential in their own neighbourhood. They have waited for over half-a-century for its fulfilment and are now impatient to move ahead.

We can sense this impatience in the outpouring of popular sentiment after our initiatives. The increased travel between Indian and Pakistani parliamentarians, businessmen, artists and sportsmen show the intense desire for amity and goodwill. We have to respond to this desire by seeking every possible way to banish hostility and promote peace.

If we in South Asia look back objectively at the experiences of our freedom struggles and of our nation-building, the one stark lesson that stands out is the imperative of forging a unity based on our commonalities. Whenever we have dissipated our energies in internal squabbling, external forces have come in to sort out differences and stayed on to exploit our resources. We should never create the possibility of reliving these historical experiences in new forms and on different fronts.

All these are aspects which your conference could discuss as it exchanges ideas on the economic, strategic and geopolitical future of India and South Asia, ahead of the forthcoming SAARC summit. Our search for pragmatism, maturity and wisdom will have to involve both governments and civil society. It will also require a widespread understanding that in today’s contest, collective regional interest is an expression of enlightened self-interest.

H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function held in Gauriganj today

H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function held in Gauriganj today, laid the foundation stone of the building of the Gauriganj Campus. The public function was well attended by representatives of the local administration, community leaders and large number of people from the area. The campus building will be called 'Nepal Bharat Maitri Bhavan', and will stand as an enduring symbol of the friendship between the two countries.

Government of India has sanctioned assistance Rs. 67 lakhs for the construction of the campus. A tripartite agreement was signed in July, 2003, between the Embassy of India, the District Development Committee, Jhapa, and the Gauriganj Campus, Gauriganj, Jhapa laying down the modalities of providing Indian assistance for this project. The construction of the Campus would be executed by the istrict Development Committee, Jhapa in accordance with prescribed procedures. An oversight committee consisting of the Chairman, Vice-Chairman and Member of the Campus Managing Committee and the District Education Officer has been constituted to supervise construction and ensure proper utilisation of the grant assistance.

The need for a Campus Building at the Gauriganj Campus has long been felt by the local community. The construction of the building of the Campus would go a long way in improving the educational infrastructure for the people of this district.

The Embassy of India has seen reports concerning delay in communicating agrément in respect of H.E. Mr. Karna Dhoj Adhikary, Nepal’s Ambassador-designate to India.

2. It has been suggested in these reports that agrément has not been conveyed to date by India. Various interpretations of this alleged delay have been printed alongside.

3. The Embassy of India wishes to state that agrément for the appointment of H.E. Mr. Adhikary was formally conveyed to the Ministry of Foreign Affairs, His Majesty’s Government of Nepal, on December 1, 2003. The Embassy has confirmed from the Ministry that the communication has been received and that H.E. Mr. Adhikary will be leaving for New Delhi shortly to assume his post. We look forward to warmly welcoming His Excellency in India and wish him every success in his new assignment.

4. The Embassy of India is concerned over the publication of unverified news and baseless reports which then become the basis for unfounded allegations about India’s policies regarding Nepal. Such reports can create avoidable misunderstanding between our two friendly neighbouring countries and adversely affect bilateral relations.

H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function

H.E. Mr. Shyam Saran, Ambassador of India to Nepal, at a public function held at Babarganj today, laid the foundation stone of a classroom block, a boys’ hostel and a girls’ hostel of the Shree Durga Janata Madhyamik Vidyalaya, Babarganj, Sarlahi. The public function was organised by Mr. Rajendra Mahto, Ex-MP and General Secretary, Nepal Sadbhavana Party. Representatives of the
local administration, community leaders and large number of people from the area, were present in the function. The classroom block building will be called ‘Nepal Bharat Maitri Bhavan’, the boys’ hostel will be called ‘Mahatama Gandhi Purush Chhatravas’ and the girls’ hostel will be called ‘Kasturba Gandhi Mahila Chhatravas.’ The three buildings will thus stand for long years as enduring symbols of the friendship between the two countries.

Government of India had sanctioned assistance of Rs. 21 million in December 2002, for the construction of the above buildings alongwith compound wall, and for purchase of laboratory equipment and library books for the Vidyalaya. A tripartite agreement was signed on July 30, 2003 between the Embassy of India, the District Development Committee, Sarlahi, and the Shree Durga Janata Madhyamik Vidyalaya, Babarganj, Sarlahi, laying down the modalities of providing Indian assistance for this project. The construction of the classroom block, hostels and compound wall would be executed by the District Development Committee, Sarlahi in accordance with prescribed procedures. An oversight committee consisting of the Principal of the School, two social workers from the VDC, Babarganj and the District Education Officer has been constituted to supervise construction and ensure proper utilisation of the grant assistance.

The construction of the additional classroom block, hostels for boys and girls and compound wall, alongwith procurement of laboratory equipment and library books, would go a long way in improving educational infrastructure for the people of this district.

Message of the Hon’ble Prime Minister of India, Shri A. B. Vajpayee on the occasion of eighteenth anniversary of founding of the SAARC

The following is the message of the Hon’ble Prime Minister of India, Shri A. B. Vajpayee on the occasion of eighteenth anniversary of founding of the SAARC, celebrated annually on December 8 as SAARC Charter Day.

“I have great pleasure in extending greetings and felicitations to all my fellow South Asians on the occasion of the 18th anniversary of the founding of the South Asian Association for Regional Cooperation.

In these 18 years, we have moved forward in our collective endeavour to establish a regional identity through the SAARC process. Our common agenda is rich and diverse – to work closely together to maximise economic cooperation; to promote equitable development in our countries; to jointly fight poverty, disease, hunger and illiteracy; to strengthen our cultural affinities; and to transform South Asia into a region of progress and prosperity.

We still have a long way to go to fully realize our latent collective potential and to achieve our ambitious objectives, India remains fully committed to cooperating with all other member countries to realize our goals, enshrined in the SAARC Charter”.

Sd/
(A. B.Vajpayee)

Kathak workshop at Padma Kanya Campus

The Workshop by Geetanjali Lal from the Kathak Kendra, Delhi, at Padma Kanya Campus on November 3, 2003, will now take place at 11.30 instead of 10.30.

Catch the Rhythm and Beat of Kathak

We bring to you top class Kathak on Sunday, November 2 (Kartik 16) at 4:30 pm at the Royal Nepal Academy, Kamaladi, Kathmandu

Internationally acclaimed artiste Geetanjali Lal from the Kathak Kendra, Delhi, accompanied by Abhimanyu Lal and Vidha Lal will present the full splendour of India’s popular classical dance form – Kathak.

Apart from Kathmandu, this team will also perform in Bhadrapur (November 7) and Rajbiraj (November 9). A workshop at Padma Kanya (10:30 am on November 3) and a performance at St. Xavier’s College (November 4) are also scheduled.

For the performance at Royal Nepal Academy on November, you may like to reserve passes. Please let us know your requirements and arrange to pick up your invitations from the Indian Embassy Gate from Monday, October 27 onwards. Looking forward to your presence at RNA on November 2.

Bhojpuri play in Kathmandu

Bhojpuri language is amongst the infinite things India and Nepal share. We are celebrating this common lingua with a musical folk drama – "Bideshiya". This play will be performed by Nirman Kala Manch of Patna, Bihar.

Bideshiya is being performed by an award winning troupe and employs all techniques of folk theatre to deliver an afternoon of colourful and riotious, musical entertainment. Bideshiya's director is from Delhi's prestigious National School of Drama.

The performance is on Sunday, October 19 (Kartik 2) at 3:30 pm at the Royal Nepal Academy, Kamaladi. Passes are available at the Indian Embassy gate and the Nepal-Bharat Sanskritik Kendra Library, RNAC Building, New Road.

VISIT OF NDC TEAM FROM INDIA TO NEPAL

A 21 member team from the National Defence College (NDC), India, is presently on a four day visit to Nepal from Sep 22 to 25, 2003.

National Defence College of India is an apex institution engaged in the study of the higher direction of policy at the national and international level which senior military and civilian officials may be called upon to handle in the course of their careers. The course is attended by senior officers of the Indian Defence Forces and Civil Services as well as Armed Forces Officers of friendly foreign countries. At present, Brig Gen Prakash Bahadur Basnyat of the Royal Nepalese Army, is also attending this prestigious course.

As part of their curriculum, the College organises tours to neighbouring and other foreign countries to enable student officers to interact with their counterparts and to acquaint themselves with the socio-political, economic, defence and foreign policy aspects of the countries they visit. With this objective in view, the members of the NDC team will be exchanging views with senior civil and military officials during their current visit to Nepal. The visiting team will pay a courtesy call on the Rt. Hon'ble Prime Minister of Nepal, Mr Surya Bahadur Thapa, Chief Secretary, Mr Bimal Prasad Koirala, Foreign Secretary, Mr Madhuraman Acharya, Defence Secretary, Mr Madan Prasad Aryal, Vice Chairman, National Planning Commission, Dr Shankar Sharma, SAARC Secretary General, Mr QAMA Rahim, and also meet Rt. Hon’ble General Pyar Jung Thapa, Chief of the Army Staff of the Royal Nepalese Army. A similar visit had taken place in 2002.

The visiting NDC Team is headed by Maj Gen Ashok Vasudeva, VSM, Senior Directing Staff (Army) of the College. Besides Indian civil and military officers, the visiting team has officers from Algeria, Thailand, Phillippines, Bangladesh and Sri Lanka.

There have been a number of media reports lately on the delay in the operationalization of the ICD at Birgunj.

There have been a number of media reports lately on the delay in the operationalization of the ICD at Birgunj. Several of these reports have blamed the Indian side for the delay. Such reports are factually incorrect and misleading.

The Government of India has gone out of its way to extend to Nepal, the most favourable conditions possible for the direct transport of goods from and to Nepal, through Indian territory, using the Indian rail network. India itself has constructed the railway line from Raxaul to Birgunj with a grant assistance of Nepalese Rupees 440 million which is not an insignificant contribution to the success of this project. The customs procedure applicable are virtually the same as for an Indian exporter or importer, except for the requirement to file a declaration of contents of any consignment. India has extended these facilities in the belief that the faster and smoother flow of goods to Nepal is also in India’s interest, since it reduces delays, cuts down freight and insurance charges and promotes trade between our two countries. This assistance is also in the tradition of India’s longstanding contribution to Nepal’s economic development.

An impression is sought to be created that while consensus was reached on all the pending issues relating to the proposed bilateral Railway Agreement, it was India which once again created an obstacle by raising a new issue, that of the applicability of the Indian Railway Act 1989, in Nepali territory. In fact, the applicability of the Indian Railway Act was not an issue in any earlier rounds of negotiations. This had been accepted by the Nepali side on the basis that Nepal did not have its own Railway legislation for the time being. It was also explained to the Nepali side that the Indian Railways has its own elaborate procedures and operating instructions which made it impossible for it to operate in a legal vacuum. It was the Nepali side which reopened this issue at the end of the last round of talks. It is not India that, suddenly sought to “impose” the Act on the Nepali side subsequent to agreement being reached on all other issues.

The Indian side has been flexible and has suggested that the applicability of the Indian Railway Act be accepted until such time as Nepal enacts its own railway legislation and the two countries subsequently work out mutually agreed provisions. This would be a practical way of ensuring the early operationalization of the ICD. It is for the Nepali side to indicate what it wishes to do in this regard.

The Embassy of India hopes that this will clarify the situation with regard to this subject and uninformed and biased allegations are avoided against a friendly neighbour which has all along shown immense goodwill towards Nepal and has a record of contributing to Nepal’s infrastructure and economic development.

H.E. Shyam Saran, Ambassador of India’s Opening Statement at the Reporters’ Club on August 13, 2003

I am happy to have another opportunity to interact with distinguished members of the Reporters’ Club. During my very first encounter with you soon after my arrival in Kathmandu, I was deeply impressed by the professional enthusiasm of and incisive questioning by the members of the club. We know from our own experience in India what a critical role a free and vibrant press can play in upholding democratic principles and people’s rights. I have no doubt that democracy has a bright future in Nepal, precisely because there is an independent media which is not only vigilant in safeguarding Nepali interest but also in working hard to develop a culture of investigative but responsible journalism.

In these opening remarks, I would like to focus on India. As you know, in a few days’ time, India will be celebrating the 57th anniversary of its Independence. As a people we have been through many ups and downs in the past half-century or more. During the early years of our independence, there were many doomsday predictions about India. Some experts believed India would not survive as a united country, but would inevitably break up into smaller units. Others saw India as the classic Malthusian example, where its population growth would outstrip food supplies, resulting in the economic and political chaos. Still others felt that democracy was a luxury that a developing country like India could ill-afford. On each of these counts, India has proved its detractors wrong. India is today a strong and united country. It has a strong centre and strong states. It is, in a very real sense, a common market of over a billion people. Contrary to dire prognostications, India has put behind it the images of hunger and deprivation, and is now already a major food exporting nation. To be able to feed a billion people, to have reserve stocks in excess of 60 million tonnes and to be able to export significant quantities of both rice and wheat is not an insignificant achievement. Lastly, India remains a functioning democracy, in fact democracy has now taken such strong roots among the people of India, that it can never be subverted.

During the past decades or more, India has been registering a growth rate of 6% per annum. In PPP terms, it is already the fourth largest economy in the world. Our foreign exchange are US $ 85 billions and still growing, while the Indian rupee is one of the few currencies that is actually appreciating. From being a debtor nation, India is today a creditor to the IMF and the rupee is already convertible on current account.

Most people are aware of the giant strides India has taken in the Information Technology Sector. IT software exports are now US $ 10 billion and slated to reach US $ 50 billion by the year 2010 or even earlier. We have also made significant advances in several high technology areas such as space sciences and biotechnology. India is today a highly competitive source of high technology as
well as management skills. We are conscious that we have a long way to go yet, but today there is a sense of confidence and assurance amongst our people and an optimism about our ability to join the ranks of developed nations by the year 2020 – a vision cherished by our President Abdul Kalam.

What do these developments mean for Nepal? I sincerely believe that India is today a great opportunity for Nepal, a factor that could infuse immense energy into Nepal’s development . There are no two economies that are as complementary as India and Nepal. We can develop an interdependent partnership from which both our countries could benefit.

With all its recent economic achievements India is not an affluent country. But, even within our modest capabilities and achievements we have always been willing to extend developmental assistance to Nepal. Our efforts till now have concentrated on strengthening Nepal’s infrastructure, especially in roads, medical facilities and educational sectors throughout the country, as well as providing opportunities to Nepalese students to pursue higher education in India. We have also increasingly begun directing our assistance to community and grass root projects such as those providing solar energy, drinking water, school buildings and roads to remote areas. Scholarship schemes have also been introduced for students studying in Nepal at both the 10+2 level (500 scholarships) and undergraduate levels (50) scholarships.

One major India-assisted project worth Nepali Rs. 1320 million to be soon completed is the state-of-the-art East-West Highway Optical Fibre Project which will enable Nepal to enter the new information age. The other significant India aided project is the INSAT Ground Receiving Facility with Meteorological Data Dissemination Receiving System in Nepal for receiving accurate weather forecasting data in real time. There are also plans to establish under Indian grant assistance a high performance computing facility in Nepal using the state-of-the-art Indian super computer “PARAM PADMA” for use in weather forecasting, hydrology, geomatics, and remote sensing.

There are, as you are aware, many layers of interaction between India and Nepal. Given the scope and extensive nature of our interaction, it is inevitable that there will occasionally arise controversies and difference of opinion on various issues. We must not ignore such issues, but neither should be fall prey to the temptation of exaggerating them, some times to the point where they begin to over
shadow the many positive things that are happening in our relations. Given the close and friendly relations our two countries enjoy since time immemorial, there is no issue that can not be resolved through friendly dialogue. That is the spirit in which we approach our relations with Nepal.

The second meeting of High Level India-Nepal Technical Committee

The second meeting of High Level India-Nepal Technical Committee on Inundation Problems in Siddarth Nagar (India) / Rupendehi (Nepal) and Banke (India) / Shravasti (Nepal) districts met in Lucknow (India) on August 11 and 12, 2003. The High Level Technical Committee was set up on the occasion of the visit of the Prime Minister of Nepal to India in March 2002 and was given a mandate to resolve the problem of inundation both in Nepal and in India in the designated areas through bilateral discussions based on agreed technical parameters.

2. In the first meeting of the High Level Nepal-India Technical Committee held in May 2002, a decision was taken to carry out a joint survey of the Lotan-Rasiawal Khurd area in India and the Marchawar area in Nepal, including the Bangain-Thumba road in Nepal. The objective of the joint survey was to scientifically establish whether the construction of the Lotan-Rasiawal Khurd embankment, even if completed, would inundate Nepalese land along the border. It was also tasked to establish whether the raising of the level of the road on the Nepali side was a factor contributing to the inundation of villages on the Indian side. In addition, the Nepali side was to supply relevant rainfall data on a daily basis during the monsoon period for the Marchawar area to determine the amount of precipitation received and its impact on inundation, if any.

3. A joint survey was carried out later 1in 2002 and its report was signed by representatives of both survey teams. The survey showed the following results:

(i) The Bangain-Thumba road is, on an average, 1.4 meters above the surrounding ground level and does not possess sufficient culverts or cross drainage structures to allow the flow of water from the adjoining Kunhra River. As a result, any spillover during flood season is draining southward into Indian villages in the Kunhra - Ghonghi Doab.

(ii) The survey established that the level of the Lotan-Rasiawal Khurd embankment was much lower than the Marchawar area, hence any pondage resulting from this embankment, even when completed, could not affect villages in the Marchawar area.

(iii) The Nepali side did not supply rainfall data as agreed upon in the first meeting of the High Level Technical Committee. At the second meeting, it was decided that this data would now be regularly supplied to the Indian side and would be reviewed at the next meeting of the Committee.

4. With regard to the issue of inundation of Banke, the first meeting of the High Level Technical Committee had agreed that a field visit would be carried out in order to work out the modalities and solution of the inundation problem of Banke and Shravasti districts of Nepal and India respectively. This joint site visit was carried on August 9 and 10, 2003, prior to the second meeting of the Committee. As a result of this visit, certain important decisions were arrived at by the two sides.

(i) Gauges would be established at agreed sites on both sides of the border to determine the degree of inundation and its duration.

(ii) Nepali side would provide the Indian side with its proposed alignments of the embankments to be constructed on both the left and right banks of the Rapti River in order to protect Nepali villages. These embankments would be constructed with financial assistance from the Government of India.

(iii) Further discussions would be held on the residual work of the Kalkalwa marginal embankment upto the Rapti barrage on the basis of mutually agreed parameters.

5. The two sides decided that the above mentioned tasks should be completed by November 2003 with a view to holding the next meeting of the High Level Technical Committee soon thereafter. The Indian side proposed that the Committee should wind up after fulfilling its mandate latest by March 2004 and submit its report to the two Prime Ministers.

6. During the meeting the Nepali side put forward a demand that in the two areas, the pre-construction status should be restored. This runs counter to agreed objectives of the discussions held so far on these two issues and falls entirely outside the mandate given to the Committee by the Prime Ministers of the two countries in March 2002.

7. The Indian side has pointed out that our two neighbouring countries have a large number of rivers and water courses which cross from one country to the other. The areas along the India-Nepal border are the flood plains for many of these rivers and it is inevitable that during strong monsoons, there is a flooding in these areas. Such phenomena affect villages and populations not only on the Nepali side but on the Indian side as well. These problems can only be tackled effectively through cooperation between, and coordinated action by,
concerned authorities in India and Nepal based on careful technical studies and scientific principles. India is ready to cooperate with Nepal in setting up an efficient flood forecasting and early warning system. It is prepared to carry out joint surveys, studies and construction of structures needed to resolve the problem which affects both countries. It is only through such cooperation carried out through agreed mechanisms that this shared problem can be tackled successfully to the benefit of both sides.

No. KAT/53/2003 August 1, 2003

INDIAN ASSISTANCE OF RS. 20.73 MILLION FOR UPGRADATION OF THE PHYSICAL INFRASTRUCTURE OF SHREE DURGA JANATA MADHYAMIK VIDYALAYA, BABARGANJ, SARLAHI

A Memorandum of Understanding (MOU) was signed on July 30th between the Embassy of India, the District Development Committee, Sarlahi and the Shree Durga Janata Madhyamik Vidyalaya, Babarganj, Sarlahi regarding grant assistance from Government of India amounting to Rs.20.73 million for the construction of additional classroom buildings, hostels for boys and girls and compound wall of Shree Durga Janata Madhyamik Vidyalaya, Babarganj, Sarlahi.

The project will be executed by the District Development Committee, Sarlahi. An oversight committee consisting of the Principal of the School, two social workers from the VDC and the District Education Officer, Sarlahi, has been constituted to supervise construction and ensure proper utilisation of the grant assistance.

The implementation of the above project would go a long way in improving educational infrastructure
for the people of this district.

No. Kat/51/2003 July 30, 2003

Indian Assistance of Rs. 757 Million For a 200-Bed Emergency and Trauma Centre

An Agreement was signed today between the Government of India (GOI) and His Majesty’s Government of Nepal (HMGN), for the establishment of a 200-bed Emergency and Trauma Centre in Kathmandu. Shri Shyam Saran, Ambassador of India, signed on behalf of GOI, and Shri Bhanu Prasad Acharya, Finance Secretary, signed for HMGN.

This Centre will be set up with Indian grant assistance on about 5157 sq. mtrs. of land provided by HMGN in the south of the existing National Academy of Medical Sciences (erstwhile Bir Hospital) in Kathmandu.

Indian assistance has been playing a crucial role in the development of the Bir Hospital, Kathmandu. In 1984-85, a five-storied OPD Complex with a capacity to accommodate 2,500 out-patients, equipped with sophisticated equipment and facilities, was constructed under grant assistance from GOI. A modern Nuclear Imaging Centre was set up in 1987, making this hospital the
premier health-care institution in Nepal.

HMGN's request for the establishment of an Emergency and Trauma Centre attached to the Bir Hospital, had been under consideration of GOI since 1997. The Concept Plan for the Centre was prepared by the Hospital Services Consultancy Corporation (India) Ltd., under the guidance of the All India Institute of Medical Sciences, New Delhi, after consultations with Bir Hospital and HMGN. It is estimated that this project would cost about 757 million Nepali Rupees, all of which will be provided by GOI as grant assistance.

The proposed Emergency and Trauma Centre will be housed in an eight-storied building with two basements, containing state-of-the-art equipment and other facilities, including 5 major operation theatres, to provide the best possible trauma medical care services to the people of Nepal. With this project, a major gap in the health infrastructure in Nepal, namely, the lack of a properly equipped medical centre to deal with emergency and trauma cases, will be addressed.

No.Kat/49/2003 July 19, 2003

The Excise Duty on Indian manufactured goods imported into Nepal is refunded regularly.

The Excise Duty on Indian manufactured goods imported into Nepal is refunded regularly to His Majesty’s Government of Nepal as per the India Nepal Treaty of Trade.

In the just concluded Nepali Financial Year 2059-60, an amount of NRs 237,06,24,137/- has been paid by India to Nepal. This refunded duty constitutes a significant 14% of the total Customs Revenue of Nepal.

This year the refund increased by 39% over 2058-59. Hon’ble Finance Minister of Nepal Dr. P. C. Lohani in his Budget presentation also stated that “refund of Indian Excise under DRP has been encouraging during last fiscal year. As the trade between India and Nepal is strengthening and growing, this amount has grown almost four fold in 10 years from NRs. 56 million in
2049-50 to NRs 237 million in 2059-60.

No. Kat/48/2003 / July 18, 2003

Nepali media concerning problems caused by floods in areas close to the India-Nepal border.

The Embassy of India has seen a number of reports in the Nepali media concerning problems caused by floods in areas close to the India-Nepal border. These problems have, in several cases, been blamed on actions arising on the Indian side of the border, including allegations of unilateral construction of bunds and/or embankments in violation of bilateral agreements.

India and Nepal have a large number of large and small rivers and nallahs which cross from one country to the other. The areas along the India-Nepal border are the flood plains for many of these rivers and it is inevitable that during strong monsoons, there is flooding in these areas. The problem is compounded by the increase of population in the flood plains, the deforestation of hills in the north and the construction of roads and
embankments on both sides of the border. Inundation problems in Nepal allegedly caused by actions on the Indian side have received prominence . However, there are also instances of serious inundation affecting lifeand property on the Indian side as a result of actions on the Nepali side.

These problems can only tackled effectively through cooperation between, and coordinated action by, concerned authorities in India and Nepal and this has been the consistent approach of the Government of India.

India and Nepal have in place a Standing Committee on Inundation Problems (SCIP), a Sub-Committee on Embankment Construction and a Committee on Flood Forecasting, to enable close cooperation on matters relating to floods and inundation issues. Whenever required, higher level consideration of such issues has been agreed upon, such as the High Level Technical Committee on Inundation Problems in Banke Nepal)/Sravasti(India) and Rupandehi(Nepal)/Sidharthnagar(India). India has advocated regular meetings of these bilateral bodies as also frequent interaction between contact
officers designated by both governments so that all issues relating to inundation and flooding are addressed in a timely fashion. In cases of difference of opinion, we have expressed our readiness for joint site visits and technical discussions, as is the case with the Mahalisagar embankment.

India has worked closely with Nepal in tackling several inundation issues. Recently, the construction of an embankment along the Lal Bakiya river in Rautahat district of Nepal was completed with an Indian grant assistance of NRs 40 million. Agreement has also been reached on the construction of an embankment along the Bagmati river, in both Rautahat and Sarlahi districts, at a cost of NRs 210 million to be borne by the Indian side. Work on this project is likely to commence after the monsoons. Flood protection
measures in Nepal along the Rapti, Kamala and Khando rivers are currently under
discussion.

India is ready to cooperate with Nepal in not only setting up an efficient flood forecasting and early warning system but also in carrying out joint surveys, studies and construction of structures needed to ameliorate a problem which affects both countries. It is only through such cooperation carried out through agreed mechanisms that we can deal with this shared problem successfully and for mutual benefit.

No. KAT/39/2003 7th June, 2003

Hon’ble Prime Minister of India, Shri Atal Bihari Vajpayee’s message to the Right Hon’ble Prime Minister of Nepal

Excellency,

I extend to you warm felicitations on your appointment as Prime Minister of Nepal. You have assumed the stewardship of your nation at a critical moment in its history and I wish you all success in your endeavours.

A multi-party government with executive authority as provided for under the Constitution, should help to create a more conducive atmosphere for tackling the serious problems Nepal is currently faced with. We hope that efforts to build a new national political consensus in Nepal to address the challenges will succeed.

As a close friend and neighbour, India remains committed to strengthening the deep friendship and multi-faceted cooperation with Nepal.

With assurances of my highest consideration.
Sd/-
(A.B. Vajpayee)

His Excellency
Mr. Surya Bahadur Thapa,
Prime Minister of Nepal,

Kathmandu

16th Indian Ex-servicemen Welfare Organisation in Nepal (IEWON)

No. KAT/36/2003 7th June, 2003

The week long 16th Indian Ex-servicemen Welfare Organisation in Nepal (IEWON) Conference ended this morning. During this visit the Indian delegation led by Lt Gen V K Dua called on the Chief of Army Staff, RNA Tri. Sha. Do. General Pyar Jung Thapa and the Defence Secretary Mr Madan Prasad Aryal and also interacted with a large number of senior officials of HMGN.

In the Conference issues relating to the welfare of the Nepal domiciled Government of India pensioners in general and the ex-servicemen in particular were discussed. Prominent amongst them were the setting up of a Pension Paying Office (PPO) at Butwal (as in Pokhara and Dharan) and setting up of a school at PPO Pokhara.

The delegation also visited the PPOs at Pokhara and Dharan and also inspected a number of welfare schemes executed by the Indian army for the benefit of the Nepal domiciled Government of India pensioners. The conference finalized the welfare schemes and projects for the financial year 2004–5 for benefit of over 1,16,000 Nepal domiciled Government of India pensioners.

Ambassador of India, HE Mr. Shyam Saran will inaugurate the Library of the Nepal Art Council

No. KAT/37/2003 27th May, 2003

Ambassador of India, HE Mr. Shyam Saran will inaugurate the Library of the Nepal Art Council at 11.00 am on Friday, 30th May, 2003 (Jestha 16). The Library has been built and equipped from a grant given by the Government of India.

2. Former Prime Minister and President of the Nepal Art Council, Mr. Kirtinidhi Bista will preside over the event.

India has extended the facility of Duty Exemption Pass Book Scheme

No. KAT/32/2003 May 27, 2003

The Government of India has extended the facility of Duty Exemption Pass Book Scheme (DEPB) to Jogbani and Sunauli Land Customs Stations. The facility was available till recently only at Raxaul Land Custom Station.

With the expanding India Nepal trade and setting up of new industries in Nepal, Government of Nepal allowed import of certain items from India against payments in dollar to make Nepal’s exports competitive. Imports under this provision were exempt from all taxes in India. With a view to enable the Nepalese importers to source their raw materials and intermediate products from India at more competitive rates, Government of India introduced the scheme of DEPB etc. at Raxaul Land Custom Station from November, 2002. Due to this change the exporters of products to Nepal also enjoyed benefits under Duty Free Replenishment Certificate (DFRC), advance licence scheme (DEEC) etc. With the success of the operation of the scheme at Raxaul Land Custom Station, requests from Nepalese companies and Chambers of Commerce and Industry were received to permit imports from India under these schemes from additional land custom stations such as Jogbani and Sunauli.

The issue of notification No. 84/2003-CUS dated 27th May, 2003 extending these facilities to Jogbani and Sanauli enables the Nepalese entrepreneurs located in Eastern and Western Nepal to avail of the benefits enjoyed by the entrepreneurs in the Central Region around Birgunj.

These new facilities will further enhance trade and commerce between India and Nepal.

General N C Vij, PVSM, UYSM, AVSM, ADC, Chief of the Army Staff, Indian Army

No. KAT/24/2003 25th April, 2003

General N C Vij, PVSM, UYSM, AVSM, ADC, Chief of the Army Staff, Indian Army accompanied by his wife Mrs Rita Vij has concluded a goodwill visit to Nepal today. On 23 Apr 2003, the General was bestowed the rank of Honorary General in the Royal Nepalese Army at a glittering investiture ceremony at Narayanhiti Palace by His Majesty, King Gyanendra. During his visit the General called on the Prime Minister of Nepal and held meetings with senior Royal Nepalese Army Officers. He also visited Royal Nepalese Mountain Warfare School, Kesang and No 3 Brigade HQ at Pokhara.

2. General and Mrs Vij visited the Pension Paying Office at Pokhara and Dharan on 24 and 25 Apr respectively. Approximately one lakh pensioners of the Indian Army are living in Nepal and are distributed pension by these offices which look after both pensions and welfare projects for the
ex-servicemen. These establishments have facilities such as Computer Training Centres, Knitting and Stitching Classes and English Coaching Classes, where war widows and sons and daughters of Indian Army ex-servicemen are imparted subsidised vocational training.

3. General Vij addressed ex-servicemen rallies at Pokhara and Dharan which were attended by large numbers of Indian Army pensioners and their families. The General highlighted the contributions of Gorkha soldiers to the Indian Army and assured them of continued efforts by the Government of India and the Indian Army to ensure their welfare.

4. After a four day visit, General and Mrs Vij departed for New Delhi on 25 Apr 2003. They were seen off at Tribhuvan International Airport by Chief of Army Staff, Royal Nepalese Army, Rt Hon'ble General Pyar Jung Thapa and other senior army and civilian dignitaries.

Gen NC Vij, Chief of Army Staff, Indian Army visited No 3 Brigade HQ of RNA at Pokhara

No. KAT/24/2003 24th April, 2003

Gen NC Vij, Chief of Army Staff, Indian Army visited No 3 Brigade HQ of RNA at Pokhara on the third day of his official visit to Nepal. He was received by Brig. Gen Daman Narsingh Rana, Commander No 3 Brigade of RNA, who briefed him on the current situation prevailing in the Western region of Nepal.

2. Gen NC Vij at Pokhara also visited the Pension Paying Office and addressed a well attended Ex-servicemen rally. He met a large number of war hero's of yesteryears and presented gifts to war widows. He recalled the services rendered by them while being in service in India and promised additional welfare programme for future. He was received by Lt Col Atul Kaushik, Officer-in-Charge at the Pension Paying Office.

3. In the evening, a reception was hosted by Gen NC Vij which was attended by Gen Pyar Jung Thapa, COAS RNA and senior officials of HMGN and RNA. This was followed by a dinner hosted by Gen Pyar Jung Thapa for the Indian army chief.

4. Earlier in the day, Gen NC Vij, COAS Indian Army alongwith Mrs Rita Vij visited Mukti Nath Temple.

5. Gen Pyar Jung Thapa during discussions with Gen NC Vij as also during the course of speech delivered at the banquet on 23 April at the Tribhuvan Army Officer's Club was appreciative and thankful of the prompt assistance provided by the Indian Army in RNA's time of need. Gen NC Vij spoke of the warm and cordial India-Nepal as well as Army-to-Army relations. He said that India looked to a economically strong Nepal and in future too would provide all possible assistance that is required by Nepal. It may be recalled that India since the declaration of Emergency on 26 Nov 2001 has provided training, logistics and technical support so as to strengthen RNA capabilities to combat terrorism.

Gen NC Vij, PVSM, UYSM, AVSM, ADC, Chief of Army Staff, Indian Army

No. KAT/26/2003 23rd April, 2003

Gen NC Vij, PVSM, UYSM, AVSM, ADC, Chief of Army Staff, Indian Army accompanied by Maj Gen Om Bahadur Pun, QMG Royal Nepalese Army visited HQ Western Division of RNA at Nepalgunj on the second day of his official visit to Nepal. During the visit, GOC Western Division briefed the Indian General on the current situation prevailing in Western, Mid Western and Far Western regions of Nepal.

2. On returning from Nepalgunj Gen NC Vij called on the Prime Minister of Nepal and discussed issues of bilateral interest.

3. In the evening, in a special investiture ceremony held at the Royal Palace, His Majesty the King of Nepal, Gyanendra Bir Bikram Shah Dev, conferred the honorary rank of General of the Royal Nepalese Army on General NC Vij. This practice of conferring of the honorary rank of a General of Royal Nepalese Army on the Indian COAS is a reciprocal arrangement and has been followed since the past few decades. Gen. Pyar Jung Thapa, COAS, Royal Nepalese Army was similarly conferred the honorary rank of General of Indian Army during his visit to India in Dec 2002.

4. In the evening, a banquet was organized in the honour of Gen NC Vij, COAS Indian Army and Mrs Rita Vij by Gen Pyar Jung Thapa at Tribhuvan Army Officers Club, Kathmandu.

5. Earlier in the day, Gen NC Vij along with Mrs Rita Vij visited the Pashupathi Nath Temple.

Kat/20/2003 February 28, 2003

One month extension for Vanaspati exports to India

Government of India has granted an extra 30-day time period in addition to the first year of the Trade Treaty to Nepalese exporters of vanaspati to effect their quota exports to India. Thus, documents issued by the Central Warehousing Corporation, through which the export of vanaspati to India is canalised, will now provide for 30-days extra time beyond the date of issue.

Central Warehousing Corporation has already issued No Objection Certificates to Nepalese exporters of vanaspati for 85,247 MTs as on 28th February 2003. Embassy of India is confident that, with this extra time available, Nepalese exporters will be able to complete exports of vanaspati to India of the full
annual quota of 100,000 MTs.

Kat/19/2003
February 28, 2003

“Golden Jubilee Scholarship Scheme”

To mark 50 years of economic cooperation between India and Nepal, assistance in human resource development has been expanded to include studies in Nepal also. A new scholarship scheme called “Golden Jubilee Scholarship Scheme”, is being implemented from academic year 2002-03. Under this scheme, the first 50 scholarships are being awarded today to selected Nepalese students for under graduate courses in Nepal.

· 10 scholarships are being awarded in MBBS/BDS (NRs.3,000/- per month)
· Ten for BE/B.Tech courses (NRs.2,000/- per month)
· Thirty for BSc and other disciplines. (NRs.2,000/- per month)

Selection has been on the basis of academic results and performance in an interview conducted by the Embassy. 25 of the scholarships are reserved for candidates from educationally disadvantaged districts.

Over the years, India-Nepal cooperation has made major contribution to human resources developments in Nepal. 150 scholarships/seats are provided every year by the Govt. of India through the Embassy in Kathmandu to Nepalese nationals for undergoing various courses at the Ph.D, Masters and Bachelors levels in India. These scholarships/seats are provided for a wide spectrum of courses, ranging from engineering, medicine, agriculture, pharmacology, veterinary sciences, computer applications, business
administration, music and fine arts. In addition to these, hundreds of Nepalese students avail of the facility of obtaining admission directly in Indian educational institutions/universities for general courses like BA, BSc, etc. as well as in medical and engineering courses offered by Private Educational Institutions. At any given point of time, there are at least over a thousand Nepalese students undergoing studies in Indian institutions.

In addition, with the aim of providing comprehensive and integrated training to in-service candidates of HMGN/Public Sector nominees of HMGN, a total of fifty seats are offered to Nepal every year under Technical Cooperation Scheme (TCS) of Colombo Plan and another thirty under Indian Technical and Economic Cooperation (ITEC). These in-service candidates are sponsored for various courses aimed at enhancing their administrative and technical capabilities. Nepalese nationals are also sponsored for courses in media and mass communications.

No. Kat/14/2003
February 17, 2003

INDIAN ASSISTANCE FOR POLYTECHNIC IN BIRATNAGAR

The Government of India is considering a proposal submitted through His
Majesty's Government of Nepal for the establishment of a Polytechnic in VDC
Hathimunda, Morang (10 kilometers from Biratnagar airport). The Polytechnic
will be set up in the memory of former Prime Minister of Nepal Manmohan
Adhikari, and will also stand as an enduring symbol of Indo-Nepal
friendship.

A Government of India team visited Kathmandu recently for discussions with
representatives of the Manmohan Memorial Foundation, the Council for
Technical Education and Vocational Training (CTEVT) and HMGN, on various
aspects of the proposed Polytechnic project.

The Indian assistance will cover all capital costs, including construction
of administrative and instructional buildings and hostel and residential
complex, procurement of all necessary equipment and furniture, and books for
the library. The recurring cost of deputation of Indian expert faculty, for
a period of five years, in such disciplines where Nepalese faculty is not
available, as well as the cost of training of Nepalese faculty in India,
will also be provided under the assistance from Government of India.

The Polytechnic will offer 3-year diploma courses with 48 seats each in
Electrical Engineering, Electronics and Mechanical Engineering. In addition,
short courses will be available, with 24 seats each, for training in trade
skills such as Electrician, Plumber, Automobile Mechanic, Fitter, Machine
Operator, Electronics Mechanic, Refrigeration Mechanic, Carpenter and
Welder-cum-Fabricator.

His Majesty's Government of Nepal has proposed to set up one Polytechnic
in each of the five development regions of the country. The Manmohan
Memorial Polytechnic, Biratnagar will be the first of such Polytechnics, in
the eastern development region of Nepal.

Official level India-Nepal talks on (i) a Railway Agreement and (ii) Passenger Traffic Agreement

Kat/17/2003
February 17, 2003

The attention of the Embassy of India has been drawn to several media
reports, commentaries and editorials on the recently concluded official
level India-Nepal talks on (i) a Railway Agreement and (ii) Passenger
Traffic Agreement. Several of these reports are not based on facts and
conclusions drawn are misconceived and misleading.

As stated by representatives of both countries, the talks on the Railway
Agreement succeeded in arriving at mutually satisfactory arrangements for
the operationalisation of the ICD at Birganj, Nepal. This includes the
management of the terminal, simplified customs procedures and operation of
rail services, including the facility of a one-time-lock system.

The Railway Agreement has not yet been finalized due to certain legal
issues being raised, which require consultations with legal experts on both
sides. We are confident that these issues will also be resolved soon in a
spirit of friendship and mutual understanding.

It may be mentioned here that India has built a rail link from Raxaul to
Birganj under a grant precisely to facilitate the operation of the ICD.
India’s approach all along has been to work out effective bilateral
arrangements for the smooth transit of goods through India to Nepal and for
the movement of bilateral trade between our two friendly neighbours. This
is as much in the interests of India as of Nepal.

As regards the bilateral Passenger Traffic Agreement, the Embassy of India
wishes to clarify that conceding Nepal’s position, the Indian side agreed
not to include the movement of cargo vehicles in the new agreement. Despite
this, some media reports have assumed that cargo vehicles are also part of
negotiations.

As in the case of the Railway Agreement, here too both sides have succeeded
in reaching consensus on a new set of arrangements for the movement of
passenger vehicles between the two countries, on a reciprocal basis. It is
not true that India has refused a Kathmandu-Patna or Kathmandu-Delhi link as
reported in some papers. The Indian side has only explained that these
routes will require the approval of state governments concerned in India and
that procedures to obtain such approval is already under way. There are
some technical issues which remain to be resolved and efforts are already
under way to reach a satisfactory conclusion.

India and Nepal share a long and open border. Our relations are extensive
and multi-faceted. The two countries are engaged in continuous efforts to
facilitate the movement of goods and people across our borders as this
conforms to our mutual desire to strengthen our age-old bonds of friendship
and to promote shared prosperity.

The third round of meetings between Government of India and His Majesty’s
Government of Nepal

The third round of meetings between Government of India and His Majesty’s
Government of Nepal to discuss the Agreement for the regulation of passenger
traffic between India and Nepal and the India-Nepal Rail Services Agreement,
was held from 8th to 13th February, 2003. Substantial progress was made on
the outstanding issues in both the agreements. On the few remaining issues,
as the need was felt for consultations with higher authorities on both
sides, it was agreed that further discussions would be held through
diplomatic channels with a view to finalizing both the agreements at an
early date.

INDIAN ASSISTANCE OF RUPEES 540 LAKH
FOR SOLAR ELECTRIFICATION OF VILLAGES

An Agreement was signed on December 31, 2002 between the Embassy of India
and the Alternative Energy Promotion Centre (AEPC) under the Ministry of
Science and Technology of HMGN, regarding grant assistance from the
Government of India amounting to about 540 lakh Nepali Rupees for extending
Solar Photo-voltaic Cell Technology for rural electrification.

Four villages will be electrified in the year 2002-03 under this Project.
These villages are Parsa and Laghuwa Krishanpur in District Sarlahi, Arjewa
in District Baglung and Semjong in District Dhading. Upon completion of the
project about 1400 homes and more than 15,000 people will benefit. Community
Centres, VDC offices, Schools, Dispensaries and Public spaces will also be
lighted in these villages using one of the most modern and environmentally
clean technology. Each selected home in these villages will receive a home
lighting system of 75 watts consisting of four lighting instruments, a Solar
Photo-voltaic Cell Panel and a maintenance-free battery. Street lighting
will also be provided in these villages to the extent feasible and 150 solar
lanterns will be distributed to those people whose houses cannot be taken up
for electrification.

Central Electronics Ltd. (CEL), Ghaziabad, a Public Sector Undertaking of
the Government of India, in close coordination with AEPC, will execute the
Project. In these four villages, a Gram Upbhokta Samiti (Village Consumer
Committee) will be constituted for all stages of project execution, planning
and installation. For subsequent maintenance and upkeep, a pool of six
trained personnel from amongst the consumers will be created in each
village, by CEL. The Gram Upbhokta Samiti will also manage a corpus fund
from local contributions for maintenance of the system.

Government of India's assistance earlier in 2001-02, had similarly
electrified, Bhadgaon Arkhale villages in District Gulmi and Sarang Danda in
District Panchthar, at a cost of 250 lakh Nepali Rupees.

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