India Prime Minister Narendra Modi and Nepal Prime Minister Sher Bahadur Deuba witnessed the signing of eight memorandums of understanding (MoUs) between India and Nepal on 24 August 2017, during the official state visit to India of the Nepalese Prime Minister since assuming office in June 2017. Prime Minister Deuba remarked that this bilateral meeting successfully laid the foundation to further strengthen Nepal-India ties.

The MOUs signed included the

• Implementation arrangement on cost sharing, schedules, and safeguards for construction of the Mechi Bridge under the SASEC Road Connectivity Investment Program (Tranche 2), to be funded by India through a proposed Asian Development Bank loan. The SASEC Road Connectivity Investment Program will provide last mile connectivity from the Asian Highway 2 to Nepal, expanding about 500 kilometers of roads in India's North Bengal and northeastern region, and includes a new 675 meter-long bridge across the Mechi River, with an approach road on the Nepal side. This project will promote regional connectivity, potentially boosting cross-border trade in the region; and
• Agreement on cooperation in the field of standardization and conformity assessment. Both Prime Ministers agreed to cooperate toward strengthening testing and certifying laboratories, establishing quarantine facilities and harmonizing standards, to harness the full potential of trade between India and Nepal.

Prime Minister Deuba also reported that India and Nepal agreed on appropriate implementation of the Power Trade Agreement, construction of 132 kilovolts transmission line and additional transmission lines, and fast-tracking of Upper Karnali and Arun III hydropower projects.

The two neighboring countries have also agreed to upgrade and resume operation of trade transit points in Dhangadhi-Gauriphanta, Gulariya-Murtiya, Jatahi-Piparaun and Pashupati-Sukiyapokhari.

Agreements were also reached to develop and expand the tourism sector and construct the Nijgadh airport.

Related Links:

• India-Nepal Joint Statement during the State Visit of Prime Minister of Nepal to India (23-27 August 2017)
• India Ministry of External Affairs News Release
• My India visit was ‘successful’, says Nepalese PM Sher Bahadur Deuba
• India, Nepal ink eight pacts, including MoU on key river bridge
• 8 MoUs signed with India on second day of Nepalese PM Deuba's visit
• India: South Asia Subregional Economic Cooperation Road Connectivity Investment Program Tranche 2
• India: South Asia Subregional Economic Cooperation Road Connectivity Investment Program