PM India visit to focus on economic, business agendas
KATHMANDU, OCT 19 -
Unlike erstwhile prime ministers India visits, incumbent Prime Minister Baburam Bhattarai visit to the southern neighbour will mainly concentrate on economic and business agendas. This is what the agendas known so far indicate.
Development agendas that top the prime minister’s list include seeking soft loan worth $1 billion (Rs 78 billion) for the Kathmandu-Terai Fast Track Road, assistance for constructing two special economic zones (SEZs), import of 200 MW of electricity, assistance for construction of bridges, embankments and canals.
Apart from seeking the soft loan, the government is also planning to request India for allowing the use of 500- and 100-rupee Indian currency notes in Nepal. The use of such notes has been banned in Nepal following India’s request to curb smuggling of fake currency notes. Nepal Rastra Bank has also been proposing the Reserve Bank of India (RBI) for the same time and again, but the Indian side has so far refused to entertain the idea. However, RBI Governor D Subbarao during his Nepal visit in August had said usage of such notes in Nepal could be made possible if the two governments agree.
The government will seek Indian assistance to build two SEZs in Attariya, Kailali and Birgunj. Interestingly, the proposed SEZ Act has been lingering at the parliament due to opposition of the UCPNM (Maoist), but the government led by the same party is seeking Indian assistance for the SEZ projects. “The work on SEZ will now begin as the Act was tabled at the parliament during the earlier government led by our party,” said Finance Minister Barsaman Pun.
Nepal will also ask India a soft loan worth $ 1 billion (Rs 78 billion) to construct the 80-km Kathmandu-Terai Fast Track Road. With the Nepal Army completing opening of two thirds of the tracks and a study is being carried out to provide compensation of the land acquired, the government is of the view that the work on the project can be done quickly. “The project has been included in the agenda of the prime minister’s visit,” said Pun.
Government officials say the issue of implementing the provisions in the Nepal-India trade treaty will also be included in the agenda. As per the treaty, India cannot impose customs duty on exported Nepali goods, but it has been imposing an additional fee on 162 goods. “We have concerns in this regard,” said Pun.
Nepal’s trade deficit with India has reached Rs 218 billion as of the fiscal year 2010-11 and the deficit increased by Rs 100 billion over the last two years.
Source: Kantipur
