India reveals $250 million loan for Nepal.

Manmohan Singh New Delhi: In key plans that are set to boost ties between New Delhi and Kathmandu, India on Friday revealed a $250 million line of credit and sealed a bilateral investment protection treaty that would enhance economic ties between the two neighbours.

Prime Minister Manmohan Singh held wide-ranging negotiations with his Nepalese complement Baburam Bhattarai on a host of bilateral issues, including expanding economic and security ties between the two countries.

Bhattarai updated Manmohan Singh about current political developments and sought his support in reinvigorating the peace process in his country that persists to be riven with political dissensions, said well-placed sources. He also briefed New Delhi about progress in the integration and rehabilitation of the Maoist cadre in the national army.

Manmohan Singh certained the Maoist leader that New Delhi will do all it can to stimulate the peace process in the Himalayan country and pushed for building political agreement to accelerate the process of constitution making, said sources.

The agreement on soft loans was signed by T.C.A. Rangathan, executive director of EXIM Bank and Lal Shanker Ghimire, joint secretary in Nepal’s Ministry of Finance.

In a breakthrough, Kathmandu agreed to deal with the security worries of Indian investors and went ahead with the signing of a long-overdue Bilateral Investment Promotion Agreement.

The agreement was signed by Finance Minister Pranab Mukherjee and Nepal’s Industry Minister Anil Kumar Jha.


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