Institute of Foreign Affairs

Indo - Nepal Joint Press Statement issued at the conclusion of Rt. Hon. PM Sher B.Deuba on offical visit to India

March 23, 2002

His Excellency Mr. Sher Bahadur Deuba, Prime Minister of Nepal, is paying an official goodwill visit to India from March 20-25, 2002 at the invitation of His Excellency Shri Atal Behari Vajpayee, Prime Minister of India. The Prime Minister of Nepal is accompanied by His Excellency Mr. Bijaya Kumar Gachhedar, Minister for Water Resources, His Excellency Mr. Purna Bahadur Khadka, Minister for Industry, Commerce and Supply, Mr. Bhakta Bahadur Balayar, Minister of State for Science and Techonolgy, His Excellency Mr. Arjun Jung Bahadur Singh, Minister of State for Foreign Affairs, a group of Parliamentarians, senior officials of His Majesty's Government of Nepal and business leaders. He is also accompanied by his wife, Dr. Arzu Deuba.
During his visit, the Prime Minister of Nepal visited Rajghat and paid homage to the memory of Mahatma Gandhi. The Prime Minister of Nepal called on the President and the Vice President of India. He had a meeting with the Prime Minister of India, which was followed by delegation-level talks, led by the two Prime Ministers, on bilateral and other issues of mutual interest. Ministers of Home Affairs, External Affairs, Defence, Commerce and Industry, Human Resource Development and Water Resources of the Government of India called on the Prime Minister of Nepal. The Prime Minister of Nepal also received the Leader of the Opposition, Lok Sabha. He also attended a business meeting organised jointly by the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industries. He will visit Kolkata where he will meet the Governor and Chief Minister of West Bengal.
The wide-ranging discussions during the visit were held in an atmosphere of warmth and cordiality. During these discussions, the Prime Ministers of India and Nepal noted that the close, friendly and time-tested relations between the peoples of the two countries, based on geographical proximity and traditional linkages, have been developing dynamically in all spheres. The Prime Ministers reiterated that further development of bilateral relations in a spirit of equality, mutual respect and partnership and on the basis of an enhanced level of mutual trust and cooperation remains a priority for both countries. They noted that a regular dialogue at various levels was required to widen and deepen the on-going bilateral cooperation for the mutual benefit of their peoples. The two countries would focus on a forward-looking and constructive agenda to meet the challenges of the 21st century in keeping with the changing realities of the times.
The Prime Ministers noted that in recent years, the ties between India and Nepal had been further strengthened by their shared commitment to multi-party democracy and reiterated their resolve to further consolidate democratic values and principles.

Joint Commission
The two Prime Ministers stressed the need to hold the meeting of the India - Nepal Joint Commission headed by the respective Foreign Ministers on a regular basis to oversee the entire gamut of bilateral relations and to provide the directives on measures to further strengthen them. The Commission would also review and rationalise the existing inter-governmental mechanisms.

Terrorism/Management of Border:
The Prime Ministers reiterated the determination of the two countries to work closely in fighting the scourge of terrorism which was adversely affecting peace and stability in the region and was also impeding socio-economic development. They reiterated their opposition to the use of violence in the pursuit of political or ideological objectives. The Indian side condemned the widespread attacks by the Maoists in Nepal and reiterated its support for the steps taken by Government of Nepal to maintain peace and security in the country. The Nepalese side deplored the brutal attack on the Indian Parliament on December 13, 2001 and expressed its support for India in its efforts to confront the challenge of terrorism. The Prime Ministers renewed the commitment of the two countries not to allow their respective territories to be used for activities inimical to the interest of the other. In pursuance of their shared objective of combating terrorism and cross-border crimes, the two Governments agreed to intensify their ongoing cooperation and continue to work closely with each other.
The two Prime Ministers noted the outcome of the discussions held by the Home Secretaries of the two Governments in New Delhi from February 6-7, 2002 and stressed the need for expeditious implementation of the decisions taken during that meeting, including an early conclusion of the Agreement for Mutual Legal Assistance and updating the Extradition Treaty. The two Prime Ministers agreed on the need to prevent the misuse of the open border by terrorists, criminals and other undesirable elements and directed that cooperation in this regard be enhanced. Discussions on the management of the border would continue in the Joint Working Group on Border Management and between the two Home Secretaries.

Economic Cooperation:
The two Prime Ministers emphasised the importance of working to deepen and widen bilateral economic co-operation. The Indian side reiterated its commitment to continue its association with the development efforts of Nepal.
The two Prime Ministers reviewed the progress on the implementation of various India-Nepal cooperation projects including those identified by the India-Nepal High Level Task Force.
1. B.P. Koirala Institute of Health Sciences : Noting the successful completion of the project in 1999, the two Prime Ministers directed that the conclusion of the proposed MoU between the Governments of India and Nepal on the Development of BPKIHS as a Center of Excellence be concluded within the next three months.
2. Bir Hospital Expansion : Noting that a new plot of land had recently been identified by Government of Nepal for this project, the two Prime Ministers directed that the Detailed Project Report should be completed expeditiously so that construction work on the project could commence within this year.
3. Development of infrastructure at selected border check posts along India-Nepal border : The Prime Ministers noted that the Preparation of the Feasibility Study for the project relating to development of infrastructure at four important border customs and check posts namely Raxaul-Birgunj, Sunauli-Bhairahawa and Jogbani-Biratnagar and Rupehdia - Nepalgunj, would be completed by end-April and directed that the two sides finalise the prioritized projects and work out an implementation schedule at an early date.
4. Launching of jointly-developed pilot projects in Nepal in the field of rural and community development - The Prime Ministers noted with satisfaction that the Project for electrification of two remote villages - Sarang Danda, District Panchthar in Eastern Nepal and Ankhale, District Gulmi in Western Nepal using Solar Photovoltaic energy had progressed and the supply of material and equipment had started.
5. Tanakpur-Mahendranagar Link Road – Noting that the Detailed Project Report and the cost estimates for the project had been completed, the two Prime Ministers directed that all other formalities be completed in a time bound manner to facilitate early commencement of work.
6. Setting up an Institute of Technology in Nepal – It was agreed that an Institute of Technology would be established at an appropriate location in far-western Nepal and modalities in regard to the project would be worked out expeditiously to facilitate early commencement of work on the project.
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The two Prime Ministers agreed that the Government of India would undertake the Feasibility Study of the East-West Railway in Nepal under the framework of bilateral cooperation.
The two Prime Ministers directed that necessary formalities be completed to facilitate forward movement on the laying of an Optical Fibre Cable Network along the East -West Highway in Nepal.

Trade, Transit and Investment Links:
The two Prime Ministers noted with satisfaction that the India-Nepal Trade Treaty had been renewed for a period of five years till March 5, 2007 with mutually agreed amendments to the Protocol to the Treaty without changing the basic framework of the Treaty. They expressed the hope that the new Treaty would pave the way for increased bilateral trade and encourage the pace and process of industrialisation in Nepal. The Nepalese side requested that various taxes and levies imposed prior to the renewal of the Trade Treaty may be reviewed.
The two sides agreed to expeditiously conclude a Bilateral Investment Promotion and Protection Agreement (BIPA) which would provide a framework for the promotion of Indian investment in Nepal.
Both sides agreed to resolve, as early as possible, the difficulties faced in Nepalese exports to India of agricultural and primary products because of the quarantine regulations in India. Both sides also agreed to expedite the setting up of testing facilities at Gorakhpur and Raxaul, as agreed earlier, so as to facilitate Nepalese food exports to India. The Nepalese side also requested that similar facilities be established at other major border trading routes between the two countries.
The Prime Ministers directed that within the next two months, the two sides should hold negotiations and conclude the bilateral Agreement on the operationalisation of the Birgunj-Raxaul Rail Link and the Inland Container Depot (ICD) at Birgunj.
The Prime Ministers also directed that the two sides hold negotiations and conclude the Agreement on the Trans-Border Movement of Motor Vehicles within the next two months.
It was reiterated that, as earlier agreed, imports of Indian vehicles into Nepal under Nepal’s new emission norms would be permitted on the basis of self-certification by Indian vehicle manufacturers based on type approvals. The Nepalese side conveyed that the necessary notifications in this regard would be issued at the earliest.
The Prime Ministers directed that the Inter-Governmental Committee on Trade, Transit and Unauthorised Trade, headed by the Commerce Secretaries of the two Governments, be convened regularly to review and consolidate trade and economic cooperation.

Water Resources.
The two Prime Ministers noted that the vast potential for development of hydro electricity in Nepal and the projected demand for power in India in the coming decades offered rich opportunities for cooperation to bring about rapid and environmentally sustainable economic growth on both sides of the border.
The Prime Ministers reiterated that the implementation of the Mahakali Treaty would be given high priority. In this context, the two Prime Ministers directed the two sides to complete the joint Detailed Project Report of Pancheshwar Project as per the revised schedule by June 2002 and jointly work out a Plan of Action towards the early commencement of work on the Project.
On the Sapta Kosi - Sun Kosi Project, the Prime Ministers stressed the need to set up the Joint Project Office expeditiously and commence work on the preparation of the Detailed Project Report at the earliest.
The two Prime Ministers emphasised the importance of the role of the Joint Task Force on Flood Control and Forecasting in working towards joint preventive measures. It was also agreed that there should be close consultations between the concerned authorities of the two Governments regarding flood control structures and that preparation of a Master Plan on Flood forecasting should be jointly worked out by the two sides.
The Nepalese side raised the problems of inundation in Rupandehi and Banke districts. The two Prime Ministers directed the two sides to undertake a joint survey at the level of Chief Engineers to clarify the facts on the ground and work out agreed proposals by the end of April 2002 and undertake necessary measures before this coming monsoon so that there would be no adverse effects on the lives and livelihood of people on either side of the border. With regard to inundation in Banke, the decisions taken earlier by the Joint Committee on Water Resources would also be taken into consideration.
The two Prime Ministers directed that the second meeting of the Joint Committee on Water Resources, headed by the Water Resources Secretaries of the two Governments be held immediately. They further directed that the Committee should meet at least once in every six months in future to discuss and resolve all important issues relating to Water Resources and regularly monitor progress.

Cooperation in Science and Technology:
The two Prime Ministers noted with satisfaction that the Agreement of Cooperation in the field of Science and Technology would provide the necessary framework for the ongoing and future cooperation in this area and would be of mutual benefit to both countries. They agreed that the opportunities which this Agreement would open up should be fully utilised by both sides for the benefit of the peoples of the two countries.

Cooperation in Human Resource Development:
Taking note of traditional links between India and Nepal in the field of human resource development, the two Prime Ministers noted that cooperation in this key sector would be further streamlined and strengthened.

Boundary Demarcation:
The two Prime Ministers noted the importance of a scientifically demarcated alignment of the international boundary between India and Nepal. They reviewed the progress in the work of the Joint Technical Level Boundary Committee and directed the Committee to complete its task by 2003. The two Prime Minister reiterated that, in case the Committee was unable to reach mutually acceptable agreement on certain specific segments of the boundary despite its best efforts, detailed reports on these pockets, including a compilation of the available evidence, would be submitted to the two Governments for their consideration. The Prime Ministers also directed the Joint Working Group of the Joint Technical-Level Boundary Committee to expeditiously complete its examination of the facts relating to the alignment of the boundary in the western sector, including the Kalapani area, and in other pockets, where there were differences in perceptions of the two sides.

1950 Treaty:
The Prime Ministers noted that in accordance with the earlier decision that the Foreign Secretaries of India and Nepal undertake a review of all issues pertaining to the 1950 Treaty, the two Foreign Secretaries had held their first round of discussions in January 2001 and had agreed to continue their discussions.

Indian Teachers in Nepal:
In response to the request made by the Indian side for the regularisation of the services of Indian school and college teachers employed in Nepal, the Nepalese side assured that the decision was under consideration by His Majesty’s Government of Nepal.

Consulate General of India at Birgunj:
Responding to the long-standing Indian request for the setting up of the Consulate General of India at Birgunj, the Nepalese side informed that the request would be considered by His Majesty's Government of Nepal.

Invitation:
The Prime Minister of Nepal invited the Prime Minister of India to pay an official visit to Nepal at an early date. The invitation was accepted with pleasure. The dates of the visit would be decided through diplomatic channels.

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