India, Nepal sign power pact, MoU in renewable energy

Syllabus: GS-II

Subject: International Relations

Topic: India and its neighborhood- relations.

Issue: India-Nepal Joint Commission meeting.

Context: External Affairs Minister co-chaired the seventh India-Nepal joint commission meeting in Kathmandu.


Key Agreements:

  • India will import 10,000 MW of electricity from Nepal over the next decade.
  • Agreements on cooperation in renewable energy development.
  • Virtually inaugurated three cross-border transmission lines (132 kV Raxaul-Parwanipur, 132 kV Kushaha-Kataiya, and New Nautanwa-Mainahiya) to enhance energy connectivity.
  • Pacts for implementing high-impact community development projects.
  • Launch service agreement signed for the Munal Satellite developed by Nepal Academy of Science and Technology.
  • Discussions on cooperation in defence and security to strengthen bilateral ties.
  • India announced a $75 million grant assistance to Nepal for the reconstruction of earthquake-affected areas.


India and Nepal Relations:

  • Share a historically close relationship with an open border, cultural ties, and significant economic cooperation (Beti-Roti).
  • The 1950 Treaty of Peace and Friendship forms the foundation of their special ties.
  • Nepal shares a border of over 1850 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.
  • The ‘Indo-Nepal Battalion-level Joint Military Exercise Surya Kiran’ is conducted alternately in India and in Nepal.
  • Currently, about 32,000 Gorkha Soldiers from Nepal are serving in the Indian Army.
  • India is the largest trading partner of Nepal. Nepal is also India’s 11th largest export destination.

Major issues in Ties:

  • A boundary dispute over Kalapani-Limpiyadhura-Lipulekh and Susta, escalating in 2020 due to India’s road inauguration.
  • Nepal issued a new map, leading to tensions with India rejecting the claims.

China’s increasing presence in Nepal, impacting India’s strategic interests. China’s engagement through the Belt and Road Initiative, including infrastructure projects, raises apprehensions about Nepal’s role as a buffer state between India and China.


Conclusion: The visit occurs amid rising Chinese influence in Nepal, emphasizing the unique and strengthening India-Nepal friendship

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