Prachanda assures security to Indian investors in Nepal




(September 16, New Delhi, Sri Lanka Guardian) Indo-Nepal relations, including a key treaty that governs most aspects of bilateral ties on Monday came up for review as Prime Minister Manmohan Singh held talks with his Nepalese counterpart Prachanda.

On his first visit in New Delhi after assuming the high office a month ago, the former Maoist leader sought to clear perceptions that the new Nepalese government is more inclined towards China when he said relations with India remain "crucial and vital".

Singh and Prachanda held wide-ranging talks, particularly reviewing the 1950 bilateral Trade and Transit Treaty which the Nepalese leader wants to be replaced by a new one.

Kathmandu feels the Treaty, which governs relationship between the two countries in most of the aspects, is not favourable to the Himalayan nation.

The two sides also discussed the 1954 Kosi River Agreement governing usage of its waters which flows into India from Nepal.

A breach in the embankment of the river in Nepal recently caused devastating floods in Bihar, prompting calls in India that the treaty needed to be implemented properly so that such calamities are averted.


Under the Kosi treaty, which provides for flood control, irrigation management and hydro-power generation, the Bihar government has been entrusted with the task of managing Kosi for 199 years till 2153.

The funds for repair of embankments are provided by the Water Resources Ministry.

Amid perceptions that the new Nepalese government is tilting towards China, Prachanda said relations with India are "crucial and vital" and cannot be "compared right now" with the Communist country.

"Due to our specific cultural, historical and tradition of economic inter-dependence, relations with India are crucial and vital. Although we also want to develop relations with China, they cannot be compared right now and there is no question of comparison," Prachanda said at a meeting with business leaders in New Delhi.

Prachanda's visit to Beijing, his first foreign trip after assuming office in August, led to speculation that his government was moving closer to China as New Delhi has generally been the first port of call for any new Nepalese head of government.

However, Prachanda had sought to downplay the issue saying that his visit to Beijing was only for the Olympics and that his first political visit will be to India.

Prachanda, who invited investments, gave an assurance on account of security for the Indian business establishments.

"We will do all we can to ensure industrial security in Nepal...the government of Nepal remains committed to adopt every possible measure to provide investors the necessary security," he said.

Noting that India and Nepal need to address the issue of security collectively, Prachanda said "We understand the security concern of India and we are also very much concerned about our own security. We would have to go ahead collectively."

His statement comes in the backdrop of threats received by some Indian business establishments in Nepal from Maoists.

Prachanda, who led a decade-long armed Maoist agitation against the monarchy before joining the political mainstream last year, also visited Rajghat to pay tributes to Mahatma Gandhi.

He also called on President Pratibha Patil and met External Affairs Minister Pranab Mukherjee, Congress President Sonia Gandhi and Leader of Opposition L K Advani. The Prime Minister hosted banquet for him.
- Sri Lanka Guardian