India provides assistance to Nepal and UN Office Nepal

Kathmandu, Feb 24 (UNI) Indian Ambassador to Nepal Shiv Shankar Mukherjee today handed over vehicles, communication equipments, food materials, tents and generators to Nepal Home Minister Krishna Sitaula and UN country chief Ian Martin here.

Reiterating the Indian commitment to support the peace process in Nepal, the Ambassador said that India and its people ''wished to see a stable, peaceful and prosperous Nepal." He also stressed on Indian support at creating a new, pluralistic and inclusive Nepal in accordance with the wishes of the Nepali people.

These supplies by India to the Nepal Government on the latter's request in the context of the ongoing peace process in Nepal comprise the first two, of the four phases of supplies of the entire package, the Indian embassy said in a press release.

The Indian Government will bear the cost of the entire package, estimated at present to be around Rs 70 crore, it said.

The vehicles and communication equipments will augment the civil police in Nepal to discharge its duties more effectively in the run up to the Constituent Assembly elections.

The vehicles to be used by the UN will facilitate its functioning to implement its mandate in the peace process in Nepal, according to the embassy.

"This assistance is in addition to the economic assistance package that was announced when Nepali Prime Minister Girija Prasad Koirala visited India in June 2006, whereby the Indian Government had agreed to extend immediately a one-time grant of Rs 100 crore for budgetary support to Nepal," it said.

India offered a soft credit line of 100 million dollars for the execution of infrastructure development projects as prioritised by the Nepal Government enhance India's 'Aid to Nepal' budget from Rs 65 crore to Rs 150 crore annually, the embassy said.

India waived the dues outstanding owed by the Nepal Government to the Government of India on account of defence purchases amounting to more than Rs 100 crore, arranged supply of 25,000 metric tonnes of fertilizers to Nepal at subsidized prices, granted exemption to all exports of goods manufactured in Nepal into India from the 4 per cent Additional Duty of Customs, accelerated the release of all funds to Nepal under the Duty Refund Procedure Scheme, and doubled the number of scholarships provided by the Indian Government for Nepalese students, including for girls.

Nepal Home Minister Sitaula thanked Indian government and people of India for their positive support and extensive cooperation in the democratic movement and peace process in Nepal.

Stating that Nepal expected cooperation from friendly India and other friendly countries at this crucial juncture in its history, Mr Sitaula expressed the hope that the cooperation from India, would be further expanded and strengthened.

''Parliament had recently adopted a serious resolution in the context of the centuries-old issue of democracy and for ending feudalistic mentality," said Mr Sitaula.

The Special Representative of the UN Secretary General to Nepal Ian Martin thanked the Government of India for meeting some of the key requirements of the UN Mission in Nepal.

UNI