SAARC Summit: Narendra Modi holds talks with Nepal PM, 10 pacts inked

Kathmandu, Nov 26: Prime Minister Narendra Modi on Tuesday held talks with his Nepalese counterpart Sushil Koirala on key strategic issues after which ten agreements, including a pact on USD 1 billion assistance to Nepal, were inked.

A host of strategic issues, including defence and security, were discussed between Modi and Koirala during their talks that lasted for nearly 40 minutes.

Talking about bilateral ties, Modi said, "When we trust each other, we can move forward very quickly." "Projects that have been in limbo for 25 years are moving forward. I feel very satisfied," he said after inaugurating the trauma centre built by India at Kathmandu's Bir Hospital.

Following the talks between the two leaders, the two sides finalised terms of the USD 1 billion Indian assistance for Nepal's infrastructure development, which was announced by Modi during his August visit.

The agreement for the USD 1 billion Line of Credit to Nepal was signed between Nepal's Finance Ministry Joint Secretary Madhu Kumar Marasini and David Rasquinha, the Deputy Managing Director of Exim Bank.

India and Nepal on Tuesday signed the Motor Vehicle Agreement

Modi, who arrived here earlier today for a three-day visit, will attend the two-day 18th SAARC Summit beginning on Wednesday apart from holding bilateral meetings with other SAARC heads of state and government.

India and Nepal on Tuesday signed the Motor Vehicle Agreement under which permit would be given to vehicles to ply on designated routes in each other's country. They also inked three twin-city pacts between Kathmandu-Varanasi, Janakpur-Ayodhya and Lumbini-Bodh Gaya.

The 10 agreements signed between the two countries include, MoU on India's assistance to Nepal in the construction (rpt) construction of the National Police Academy, MoU on Tourism, MoU Traditional Medicines and MoU on Youth Exchange.

A MoU was also signed on a project development agreement over the 900 megawatt hydro-electric project on the Arun river in Nepal.

PTI