Indian Prime Minister Narendra Modi offered Nepal $1 billion in concessional loans to help build power plants and roads during a visit on Sunday aimed at shoring up support in a region where China is making inroads.
Both India and China are vying for political influence in South Asia, home to more than 1.5 billion people, by offering closer integration with their giant economies. India has long been the dominant force in the region. But in recent years as its economy slowed and it struggled with policy paralysis, China has stolen a march, building ports from Sri Lanka to Bangladesh and power plants in Nepal.
Modi is on a two-day visit to Kathmandu to help speed up negotiations on a power trade pact that is at the centre of his new diplomatic drive.
"Nepal needs highways, information ways and transmission ways. India will support you in all these," he said in an address to the Nepali parliament where he announced the $1 billion credit line for the landlocked nation.
"Nepal can use this on hydropower and infrastructure projects of its choice," he said to thunderous applause in a parliament chamber where politicians in the past have often targeted India as a "big brother" meddling in its affairs.
Since becoming prime minister in May, Modi has reached out to neighbours after years of neglect, in a policy top advisers say is key to his plans to make India a military and economic power.
"The government's real challenge in Nepal is not China. It is the tragic failure of Delhi's own engagement with Kathmandu," said Raja Mohan, a top Indian foreign policy expert. "Despite geographical proximity, cultural intimacy, economic interdependence and shared political values, India has stumbled in Nepal."
This is the first bilateral visit to Nepal by an Indian prime minister in 17 years, though Indian leaders have routinely attended regional summits in Kathmandu.
Power pact
Indian and Nepali negotiators were trying to narrow down differences over a power pact aimed at harnessing Nepal's estimated 42,000 MW hydro-electric potential to meet domestic needs and also supply India's giant energy-starved economy.
The Himalayan nation currently has an installed capacity of just 600 MW because its development has been held back by years of political instability. It is still struggling with the transition to a constitutional republic after the abolition of the monarchy in 2008.
Nepal's politicians are at odds over the proposed energy pact. Opponents say it would give Indian firms a stranglehold over Nepal's energy resources and bar other countries, like China, from investment in the sector.
Modi sought to allay those concerns. "Nepal can become a prosperous nation by selling electricity to India. We want to join you in your journey to prosperity, "Modi, dressed in skin tight trousers, knee-long loose shirt and a waist coat, said in a speech in Hindi.
During the two-day trip, Modi plans to meet politicians across the spectrum, including the Maoists who have accused India of meddling in Nepal's internal affairs in the past. On Monday, he will offer special prayers at Lord Pashupatinath temple, a major Hindu landmark in Kathmandu, stressing the religious bonds with majority-Hindu Nepal, a country of 27 million people.
COMMENTS (17)
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Modi may prove to be good or bad PM but one thing which I like is that he is not a proxy like Manmohan Singh the DMK people looted the Nation with not two but four hands and he looked helplessly only for the sake of remain the PM people say that he was not corrupt then why he sided with the corrupt, at least Modi has no such compulsions.
@WB: And I ask u the same question u put to Rudra..
@Vectra
I am not judging these leaders by what they did, as what they did is history. I am more interested and impressed with the way these leaders moved the masses.
I know about Mr Jinha however I think what he did proved to be actually good for India! We must be thankful to him. At least I am.
Namaste.
We love or hate him, it doesn't matter. As an Indian I used to think that Mr Patel, Chander Shakhar Azad, Rah Guru, Mr gandhi, Mr Jinha were some great leaders of India who wrote history of the Indian Sub Continent. I always missed watching a true great leader in my life time and I am lucky to see Mr Modi. What my parents used to tell me was, we don't care how much you score in exam, we are happy to see your dedication...and I think in long run of life that believe worked for me and my parents. I have same believed in Mr Modi. I would trust him because of his intentions, I would judge him when I seem to disagree with his intention.
Till then I am happy to see him control our mad country. I don't mind even if his ways of working are a little dictatorship, I think to control a country like India, we need a leader like this. Maybe even Pakistan needs a leader like this, who can rule the constitution of the country within the limits of law like a dictator. We ISC people need to move ourself our of this poverty and international humility.
Namaste.
@Wafah Sultan:
Is everything okay sir, with you? Something doesn't seem right.
@Rudra:
Rudra, India is a country of 1.2 billion people. Have you asked all 1.2 billion to believe that I'm the only one who thinks his governance has been dull?
Also, giving warm welcome is not an indicative of anything. Tomorrow if the PM of Pakistan comes to India, we do give warm welcome and say some nice things.
@Wafah Sultan pashapatinath means god of both living(animals,human slave state) and non living things If the individual is destined, he/she takes and completes the journey to reach these footsteps of temple without any resistance or obstructions along the way, is believed to be under loving grace of Rudra. It is final stage of harsh penance. Thus, the slave (pasu - the human condition) becomes the master (pati - the divine condition). God = creator of all humans and animals, living and non living things. Don't know what warlords you talking about.
@WB: So far, only you seem to view him with suspicion/less then impressive performance complain etc. Majority of Indians are very happy with our PM. He is ten thousand times better than the currupt covert authoritarian Italian mafia family. Btw read Bhutan and Nepal media news and their people gave warm welcome given to MoDi. They even broke protocol to go receive him personally at airport. Now that the gandhi family is out of sight South Asia can Breath a sigh of relief. They were biggest obstacle to pass major international deals or decision making.
hats off to Modi. he is a true international leader!!
Pakistan will never accept a line of credit from India because paying interest is anti Islam.
Some are getting MODIfied. Some, ELECTRIfied. Whereever he goes, he creates magic.
I don't believe Modi until he give $5 billion to Pakistan for free. He need to build Pakistan stronger than India. So Sir Zaid can say "It is radio Pakistan Delhi"
OMG! This man has magic in his words. He electrified Nepali Parliament. Thanks God, we have such a leader. Jai Hind...
Modi will offer prayers at pasupathinath temple.For Pakistanis to know..pashupathinath means., lord of the animals.Good thing is that people of the book are now nowhere to be seen.The Pagan Warlords are returning into India via celestial energy warps.These divine warriors of the Godess are often demonised in Asura (zorastrian.islam.judaism.christianity) scriptures as nephilim..watchers.Truth is far away...sooon matriarchy will take over the world after Indian soldiers rule over pakistani.Hail the Gods may victory be India's.
Great going Namo,Both Nepal and Bhutan have lauded PM Modi.Now I think PM Modi will visit Myanmar next.It seems all 6 members of SAARC are now willing to grow,unite and aligning themselves with India more and SAARC ovearall in the development front and this can be seen by excitements in their govt and media since PM Modi's swearing in.Pakistan should also shed India obsession and learn from other SAARC members otherwise pakistan will find itself isolated in the corner in this part of the world also which is the home region of pakistan.South Asia is uniting and slowly and steadily it will also get converted into full economic bloc like EU,ASIAN etc,may be within this 5 year under PM Modi.