Prime Minister Narendra Modi and his Nepal counterpart Pushpa Kamal Dahal ‘Prachanda’ announced the completion of a long-term power trade deal, as well as the signing of seven documents in areas of trade, energy, and infrastructure among others.

Export of hydropower from Nepal to Bangladesh through India would commence soon, he said. “Up to 60 MW of power from Nepal to Bangladesh through India will commence soon, and the three countries will work out an agreement for this,”  Prachanda said.

India and Nepal’s energy ties are a key aspect of the bilateral partnership. One of the key agreements signed by the two leaders is a project development agreement for the 669 MW Lower Arun Hydro Project, which received approval from Nepal’s Investment Board days before Prachanda’s visit to India.

India is also developing the mega 900 MW Arun-III hydroelectric project in the neighboring country and has a 490 MW Arun-4 hydroelectric project in the pipeline as well.

In his remarks, Prachanda also touched upon the border dispute between India and Nepal. “PM Modi and I discussed the boundary matter. I urged Modi to resolve the boundary matter through the established bilateral diplomatic mechanism,” he said.

In November 2019, a border dispute flared up between India and Nepal over the Kalapani territory, located in Uttarakhand’s Pithoragarh district. India had brought out a revised political map showing the Union Territories of Jammu and Kashmir and Ladakh which Nepal opposed.

The Nepal PM also called on India to lift “anti-dumping” duty on Nepalese jute products.