India and Nepal will further consolidate their relationship, said the Joint Press Statement between the visiting Nepal Prime Minister Prachanda and his Indian counterpart Manmohan Singh released here Wednesday.
The two Prime Ministers expressed satisfaction at the age-old close, cordial and extensive relationships between Nepal and Indiain the statement and expressed their support and cooperation to further consolidate the relationship in days ahead.
The Government of India expressed full support to the peaceful, political, democratic transition in Nepal. The two sides felt the need to inject new dynamism into the relations, it says.
The 22-point statement says that the two prime ministers agreed to review, adjust and update the 1950 Treaty of Peace and Friendship and other agreements.
As per the agreement, the Indian government will provide a credit of up to 1.5 billion rupees, or 30 million U.S. dollars, tothe Nepal government for the next three months to ensure uninterrupted supplies of petroleum products.
The government of India will also lift bans on the export of rice, wheat, maize, sugar and sucrose for quantities agreed with Nepal.
Indian government will provide 200 million rupees, or 4 million U.S. dollars, as immediate flood relief to the people in Nepal.
Nepal will take measures for the promotion of investor friendly, enabling business environment to encourage Indian public and private sector investments in Nepal.
A three-tier mechanism at the level of ministerial, secretary and technical levels will be built to push forward discussions on the development of water resources between two sides, including hydro-power generation, irrigation, flood control and other water related cooperation, it says.
The two Prime Ministers directed the Inter-Governmental Committee to meet in one month to initiate a comprehensive review of the existing trade and transit arrangements with a view to promoting industrialization in Nepal, expanding complementarities of bilateral trade on a sustainable basis and removing the barriers to trade.
Prachanda arrived in India Sunday on a five-day official visit.This is Prachanda's first visit to India after becoming the first elected Prime Minister of the federal republic Nepal last month.
Source: Xinhua
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