New Delhi: The Nepali prime minister, Balendra Shah, is preparing for his first official bilateral visit to India later this month, with Kathmandu seeking more than $2 billion in financial assistance for flood reconstruction and infrastructure development. The proposed four-day visit, expected to begin on November 22, will also focus on longstanding issues involving air connectivity, water sharing, trade, transit and territorial disputes.
Shah is expected to hold delegation-level talks with the prime minister, Narendra Modi, on November 23, The Kathmandu Post reported on Friday. However, neither government has formally confirmed the itinerary or announced an agreement on the proposed financial package.
Preparations advanced during the November 4-5 visit to Kathmandu by the Indian foreign secretary, Vikram Misri, where he met Shah; the foreign minister, Shisir Khanal: the finance minister, Swarnim Wagle, and the energy minister, Biraj Bhakta Shrestha. His discussions with Khanal focused on strengthening bilateral cooperation and preparations for Shah’s visit, RNA Media reported earlier.
Both countries reviewed cooperation in trade, energy, infrastructure and border management, according to their joint diplomatic statement. The discussions also covered preparations for Shah’s visit, as RNA Media reported on Thursday.
Kathmandu has proposed more than $1 billion in concessional credit, $500 million in grants and another $500 million for reconstruction following the devastating August 26 floods in the Rasuwa-Bhotekoshi corridor, The Kathmandu Post reported, citing Nepali officials.
The proposed credit would support electricity transmission lines and infrastructure, while the grant component includes upgrading the Siddhartha highway connecting Sunauli with Pokhara.
The floods severely damaged infrastructure and disrupted Nepal’s connectivity with China. India provided humanitarian assistance and rescue support, while Misri indicated New Delhi was prepared to consider reconstruction proposals, without committing to the requested amount.
Kathmandu is also seeking additional international air-entry routes through Indian airspace to improve access to airports at Bhairahawa and Pokhara. Aviation officials from both countries are expected to meet within 10 days, with Nepali officials indicating that New Delhi appeared receptive, although no agreement has been reached.
The stalled Pancheshwar multipurpose project, envisaged under the 1996 Mahakali Treaty, remains another priority. Officials have discussed Nepal contributing 25-30 per cent of construction costs and India the remainder, but disagreements over sharing water related benefits continue to delay the project.
The unresolved Kalapani and Susta boundary disputes could also feature in the discussions, alongside Nepal’s widening trade deficit and transit concerns. Nepali officials told The Kathmandu Post that territorial disputes did not feature in Misri’s meetings, although Kathmandu hopes to raise them during Shah’s visit.
Several India supported projects are expected to be inaugurated, subject to confirmation, including the Nepal police academy at Panauti, bridges in Darchula and across the Mahakali river, and the Bhairahawa integrated check post.
The leaders could also launch construction of the lower Arun hydropower project, Dodhara Chandani integrated check post and Siliguri-Charali petroleum pipeline.
India has additionally informed Nepal that preparations for an Ayodhya-Janakpur railway service are complete, with a trial run conducted on November 5. The proposed connection could strengthen religious tourism and people-to-people ties.
India remains Nepal’s largest trading partner, with extensive cooperation spanning hydropower, electricity trade and cross-border infrastructure.
India and Nepal maintain more than 40 bilateral mechanisms covering trade, security, border management and water resources. The proposed summit offers both governments an opportunity to translate longstanding commitments into projects and agreements, although the financial package and several outstanding disputes remain under negotiation.