Tuesday, November 11, 2008

Top Nepal ministers travelling with the Prime Minister told B&E that the Treaty was skewed in India’s favour

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Nepal is unwilling to continue with the age-old status quo & has also brought a number of expectations to the table.

At his meeting earlier with Bihar Chief Minister, Nitish Kumar, to discuss the flood caused by Kosi, Prachanda said he favoured a high dam on the river. According to Foreign Secretary Shiv Shankar Menon, this also topped the bilateral meeting between Manmohan Singh and Prachanda. “We are ourselves studying the issue technically. Nepal is ready to cooperate and there will be technical discussions on both sides. We are keen to move ahead with this Kosi high dam project and Water resources Secretaries on both sides will meet to discuss the issue,” he said. Menon also said there was forward movement on the issue of hydel power projects as Nepal had 84,000 MW of electricity.

Top level officials reveal that Nepal has a variegated economic agenda that it has put up before the Indian side. Among the key issues linked to the revision of the treaty were: special provision to Nepal in various notifications of the Indian government, repair and maintenance of machinery, import of third country machinery from India, duty refund procedure on exports from India to Nepal, imports by-products into India, excise duty exemption, a 30% rebate on exports from Nepal to India and Indian investment in the Nepal’s service sector.

At the level of other policy changes, the Nepal side has proposed the introduction of a minimum value addition clause on actual cost of production to make Nepal’s fledging industry on par with India, additional seaports with railway connection to Nepal and further facilitation of cargo movement between the two countries, canalisation of vanaspati oil, Railway issues and others.

There have been lighter and more familiar moments of the trip. At his visit to a lunch hosted by Janata Dal leader Sharad Yadav, Prachanda made a truly evocative speech. “I have travelled from Kolkata to Amritsar, Delhi and south India during my days in the underground. I know your pulse. And I know that you know,” he said, adding for good effect: “I have spent a better part of my life in India. I am familiar with the lanes and by-lanes here, so there can be no misunderstanding.” In attendance accompanied by a fabulous four-course lunch were Nitish Kumar, Mulayam Singh Yadav, Prakash Karat, Murli Manohar Joshi, Amar Singh, host Sharad Yadav, K. C. Tyagi and others. During his days in the volatile underground, Prachanda had been a guest to each of them at different times.


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Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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