Earlier the meeting was postponed, now Balen Shah met Vikram Misri, will Nepal’s attitude change?

India’s Foreign Secretary Vikram Mistry met Nepal’s Prime Minister Balen Shah in Kathmandu. This meeting is considered very important, as Balesh Shah had earlier postponed this meeting. This will be his first bilateral foreign trip since taking office in March. According to a joint statement, the meeting discussed water resources, energy and trade.

Vikram Mistry A tour proposed by India in May was canceled without any official reason. The Kathmandu Post, citing government officials, linked the development to Shah’s policy against holding face-to-face meetings with officials below the rank of foreign minister. Shah also refused to meet with US officials Paul Kapoor and Sergio Gore earlier this year.

However, contact with India continued. Rashtriya Swatantra Party President Rabi Lamichhane came to New Delhi in June. Following this, Shah met Indian Ambassador Naveen Srivastava in July, a departure from his previous routine.

Strengthened in connection with flood relief

India’s aid provided another opportunity for closer engagement after the devastating floods in August. According to the Ministry of External Affairs, India has supplied more than 140 tonnes of relief material between August 26 and September 19. Assistance of equipment, rescue teams and tunneling experts to restore connectivity.

Shah praised India during his speech at the United Nations General Assembly in September. He also proposed a Himalayan Climate Resilience Mechanism involving Nepal, India and China.

Discussion on the economic package

The Kathmandu Post reported that Nepal will receive 2 billion US dollars, roughly Rs. 18,786 Crore has demanded an Indian aid package.

The report said that Shah and Mistry discussed the proposal. An official in Nepal’s finance ministry suggested that the announcement could be made at the same time as Shah’s visit to India. New Delhi has not issued any statement on the said package. According to the report, Nepal is seeking funding for transmission lines and reconstruction after the floods.

Talk about border and recruitment issues

Remaining issues include the Kalapani-Lipulekh territorial dispute and Nepal’s ban on Gorkha recruitment in the Indian Army after the launch of Agneepath in 2022. Kathmandu argued that the conscription scheme was against the 1947 Tripartite Agreement between India, Nepal and Britain. Shah’s possible visit will provide an opportunity to discuss these differences along with economic cooperation with India, Nepal’s largest trading partner.