Foreign Secretary Kwatra and Nepal's Deputy Prime Minister Shrestha discuss railways, trade, energy and G20

Kathmandu: Foreign Secretary Vinay Mohan Kwatra on Tuesday called on Nepal's Deputy Prime Minister and discussed railways, treaties and agreements between the two countries, and projects undertaken by Indian companies in Nepal, including in the power and energy sector.

Kwatra arrived here on Monday for a two-day official visit to hold talks with the country's top leaders on the entire range of multifaceted cooperation between the two neighbouring countries, including connectivity, trade and transit, power sector cooperation, agriculture, education, culture, health sector, and people to people relations, among others.

Kwatra on Tuesday called on Deputy Prime Minister and Minister for Physical Infrastructure and Transport Narayankaji Shrestha at the Ministry’s office at Singhdurbar, Kathmandu.

During the meeting, Shrestha put forth issues concerning Nepal’s railway line, economic prosperity, Indian investments in Nepal and past agreements and understandings between countries.

Kwatra also raised the issue of renewal of the Jayanagar-Kurtha railway being operated by an Indian company as its tenure is about to terminate, according to ministry sources.

India’s Konkan Railways Corporation Limited (KRCL) has been operating the country’s sole railway service.

The railway came into operation in April 2022 when it was jointly flagged off by then-Prime Minister Sher Bahadur Deuba and Prime Minister Narendra Modi. It was considered a milestone in strengthening cross-border connectivity between Nepal and India.

Kwatra also offered to provide training to Nepalese technical manpower so that in the future they can operate the railway service, which makes Nepalese railway service reliable, sustainable and safe.

The foreign secretary also expressed his concern to Deputy Prime Minister Shrestha on matters pertaining to the speedy construction of the access road to the 900-megawatt Arun III Hydroelectric Power Plant in the Tumlingtar area in eastern Nepal.

The project is expected to bring USD 1.5 billion in foreign direct investment into Nepal and create jobs for thousands of people.

In 2018, Prime Minister Modi and his then Nepalese counterpart K P Sharma Oli laid the foundation stone for the Hydroelectric Power Plant.

During the foreign secretary-level talks, both sides “agreed for the early completion and operationalisation of the remaining sections of the Jaynagar-Kurtha-Bijalpura-Bardibas and the Jogbani-Biratnagar rail links, according to a press release issued by Indian Embassy, Kathmandu.

As well as taking further steps on the proposed Raxaul-Kathmandu rail link, and committed to expediting the procedural requirements, to enable their early implementation,” according to a press release issued by Indian Embassy, Kathmandu.

The proposed broad-gauge line will give the Nepali capital a direct connection with the Indian railway network, enabling uninterrupted train travel to all Indian cities, the Kathmandu Post newspaper reported.

“The two sides appreciated the progress made in the energy cooperation last year, wherein Nepal is now able to export 452.6 MW power to India, creating additional sources of revenue for Nepal and energy for India,” the press statement said, adding “the Nepalese side requested Indian side to explore allowing power export on a long term basis.” “They also requested for utilising all products of the exchange market in order to enhance power trade between India and Nepal further,” the press release said.

“While reiterating commitment to the full implementation of the Joint Vision Statement on Power Sector Cooperation agreed between India and Nepal in April 2022, the two Foreign Secretaries agreed to also work together for mutually beneficial cooperation in the sub-regional context.” The Nepalese side also appreciated the special provisions made for Nepal in the export of sugar, wheat and paddy by India, so as to ensure a smooth supply of agricultural products to Nepal during times of global uncertainties.

“The two Foreign Secretaries also discussed multilateral and regional cooperation. The Nepalese side appreciated the invitation extended by India under its G20 Presidency to Nepal to participate in the G20 Finance Track this year,” the press release said, adding “The Nepalese side also reiterated commitment for early ratification of the International Solar Alliance.”