Transforming Ties: Modi a big HIT in Nepal, India unveils $1 billion credit

HIT Nepal with Highways, I-ways and Tansways. India has just found a winning formula to transform its relations with Nepal as Prime Minister Narendra Modi unveiled $1 billion line of credit for a host of development projects in the neighbouring country.

In the first prime ministerial visit from India in the last 17 years, Modi launched a charm offensive on his maiden visit to the picturesque Himalayan state, which is intimately bound with India by deep-seated cultural and religious ties.

Addressing the Constituent Assembly, Modi won over the hearts of Nepalese legislators by pledging India’s unswerving commitment to development of the land-locked country.

“India has decided to provide Nepal with NRs 10,000 crore ($1 billion) as concessional line of credit for various development purposes,” the prime minister announced during his address to the Constituent Assembly. “This amount is separate from the previous assistance that India has already provided to Nepal,” Mr. Modi, the first foreign leader to address the Nepalese Constituent Assembly, said. Earlier, India had pledged separately two lines of credit worth $100 million and $250 million to Nepal through the Exim Bank of India.

The concessional credit will be harnessed for infrastructure development and energy projects in accordance with Nepal’s priorities.

Nepal is the second country to get a single $1 billion LOC from India. In 2010, India had pledged $1 billion LOC to Bangladesh.

Showing out-of-box thinking to pitch India-Nepal relations onto a higher trajectory. Modi unveiled a model development formula for Nepal. “I want to HIT Nepal”, he said to ringing applause from Nepalese legislators. HIT, in Modi’s lexicon, means: H: Highways, I: I-ways and T: Transways.

Modi’s speech was a big hit with Nepalese legislators as well as ordinary Nepalese. Crowds surged in large numbers on the streets of Kathamandu to greet and cheer the Indian leader after his speech in parliament.

In Kathamandu, Modi held wide-ranging talks with his counterpart Sushil Koirala and discussed an entire gamut of issues, including trade and investment, hydropower cooperation, and security cooperation.

Mindful of sensitivities in Nepal where sections of the political elite have often voiced resentment against India’s meddling, the prime minister assured Nepal that India has no desire to interfere in Nepal’s internal matters.

“We have always believed that it is not our work to interfere in what you do but to support you in the path you decide to take,” he said.

In a rousing speech, Modi lauded robust bonds of friendship between India and Nepal and expressed his desire to see a federal democratic and republic Nepal. Playing to his captivated audience, Modi charmingly began his speech in Nepali before switching to Hindi. During the 50 minute address to Nepal’s Constituent Assembly on August 3, Modi spoke passionately about the ancient cultural ties between India and Nepal. “India and Nepal ties are as old as Ganga and Himalayas,” said the popular Indian prime minister.

Alluding to the long hiatus in high-level visits from India, Modi said: “There’s not much distance between us, but it took 17 years to come to Nepal. This won’t happen again, I will come back for SAARC summit,” said Modi. He also said that the next time he was in Nepal he would visit the ancient city of Janakpur, and Lumbini.

Nepal has rolled out the red carpet to welcome Modi, who began a two-day visit to the neighbouring country August 2.

As a special gesture of friendship, Nepal’s prime minister personally welcomed Modi at Tribhuvan International Airport August 3.

The excitement about the visit was palpable as people lined the streets to get a glimpse of the Indian leader.

Modi’s spectacular election victory in May, his invitation to SAARC leader during his swearing-in ceremony and his visit to Nepal have struck a chord in the Himalayan state, which shared deep-seated religious and cultural ties with India.

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