The package is aimed at expediting progress on long-term mega infrastructure projects in areas as roads, railway linkages, construction of oil pipelines, creation of special economic zones and upgradation of airports. In a joint statement issued at the end of the Nepalese Prime Minister Girija Prasad Koirala’s four-day official visit, India announced that it would immediately extend a one-time grant of Rs 100 crore to the budget of the Nepal government. At the same time, India will enhance its ‘Aid to Nepal’ budget for the current fiscal from Rs 65 crore to Rs 150 crore and offer a soft credit line of 100 million US dollars (Rs 4.5 crore) for execution of infrastructure development projects prioritised by the Nepalese government.
New Delhi has given Nepal another reason to heave a sigh of relief by agreeing to waive off the outstanding due as on date owed by the Nepal government to the Indian government for defence purchases. Kathmandu owes about Rs 100 crore to India for purchase of defence material.
The statement further promises to grant exemption to all exports of Nepalese goods from 4 per cent additional customs duty and arrange immediate supply of 25,000 tonnes of fertilisers at subsidised prices.
India has also agreed to double the number of scholarships for Nepalese students, including girls, accelerate the release of all funds under the Duty Refund Procedure Scheme. It has also asked the Indian Oil Corporation to work out with Nepal Oil
Corporation the modalities for rescheduling the dues owed to it on account of oil supplies, a spokesperson of the External Affairs Ministry said.
The statement said Prime Minister Manmohan Singh will pay an official visit to Nepal soon at the invitation of visiting Nepalese Prime
Minister. “The visit will take place at a mutually convenient date,” the statement said.
