April 18, 2024, Thursday
Nepal 1:37:26 pm

Nepal and India agree to expand energy, fuel, rail service network

The Nepal Weekly
April 5, 2022

Amidst visit of Prime Minister Sher Bahadur Deuba to India, Nepal and India signed four Memorandum of Understanding (MOUs). The MOUs are on mutual assistance and cooperation including expansion of energy, fuel, and railway service network.

After formal talks between Prime Minister Sher Bahadur Deuba and his Indian counterpart Narendra Modi at the Hyderabad House, a memorandum of understanding has been signed which states that Nepal will formally join the International Solar Energy Partnership. Nepal’s railway sector will be accommodated by Indian technical assistance. There will be cooperation in the petroleum sector and expert exchange between Nepal Oil Corporation and Indian Oil Corporation.

Prime Ministers of both countries inaugurated the Kurtha-Jayanagar passanger train service by waving the flag on Saturday. They also jointly unveiled India’s ‘Rupee Digital Card’ for use in Nepal. Prime Minister Deuba and Indian Prime Minister Modi also jointly inaugurated the Solu Corridor 132 KV transmission line. The transmission line was constructed in Nepal with a loan of Rs. 3.2 billion and assistance from the Government of India.

At a press conference held after the signing of the MOU, Prime Minister Deuba said that fruitful discussions were held on various aspects of Nepal-India relations. Stating that Nepal’s relations with India are very important, he lauded the progress made by India under the visionary leadership of Indian Prime Minister Modi.

Appreciating India’s effective management of the COVID-19 epidemic, Prime Minister Deuba expressed his heartfelt gratitude to India for providing the first vaccines as well as medicine and medical equipment in Nepal’s fight against the epidemic.

Both the Prime Ministers have agreed to expand such cooperation to include their partner countries under the BBIN framework subject to mutually agreed terms and conditions between all involved parties. Based on their respective national policies and climate-change commitments, India and Nepal have agreed “to make renewable energy production, hydropower in particular, a cornerstone of their energy partnership”. 

“That Indian investment into Nepal’s renewable power sector, in particular the Hydropower sector, has the potential to benefit both the countries by strengthening their economies generating employment, enhancing export earnings and contributing to further development of industrial and financial capacities, and mutually agreed to share of other benefits,” MEA said in the statement on agreements between both leaders. 

During the occasion, Nepal also invited Indian companies to invest in the development, construction, and operation of viable renewable power projects, including in the Hydropower sector in Nepal, including storage-type projects, through mutually beneficial partnerships. 

Both Prime Ministers agreed to prioritize expeditious movement on projects and initiatives on the basis of this joint vision. They agreed to continue supporting each other’s national growth and prosperity guided by mutual respect and equality.