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Nepal has always been of strategic importance to New Delhi and its scenario Like Bhutan, it is a buffer state between China and India. With this buffer Nepalese Prime Minister Mr Sher Bhadur Deuba vis India during third week Home Minister Mr LK Advani offered Indias assistance to control the India has also offered sharing of information and corporation between the

merits serious considerations. state gone, the Chinese and Nepal Maoists will be sitting on Indo-Nepal border. of Mar 2002. insurgency in Nepal. He also called upon updating the extradition treaty. intelligence agencies of the two countries. India is concerned about ISIs growth in Nepal as it could destabilize the strategic Siliguri border that connects the North East with the rest 0f the country. 6. He felt other areas also have growth possibilities like energy- intensive industries, tourism, IT, agro enterprises, horticulture, sericulture, herbal and livestock products, pharmaceutical and service sector industries such as health care etc. 7. Following agreements were agreed upon: (a) (b) (c) (d) (e) (f) (g) (h) Clamp down any activity in their territory against the other country. Nepal acknowledged Pakistans ISI working in Nepal and has Sharing of intelligence. Border patrolling. Anti dumping duties Greater access to Indian market. Early completion of Raxaul-Birgunj Railway Line. More teeth to Extradition Treaty.

undertaken to crackdown on its activities directed against India.

(j) (k) (l) 8.

India placed a point about floods in areas of UP and Bihar caused by Nepal showed its worries on inundation of parts of Nepal due to Boundary Committee to complete its work very soon. Special attention

the rivers flowing from Nepal. construction of dams on the Indian side. is to be given in Kalapani area at the trijunction of China, India and Nepal. Relations with Nepal have traditionally been good but security lapses in the Kathmandu Airport Administration, which caused hijacking of IC-814 in 2000 and resulted cancellation of Indian Airlines flight to Nepal and agitations caused due to certain alleged remarks of Hritik Roshan have been some irritants in the past. Renewal of Trade Treaty 9. India is Nepals largest economic partner and accounts for more than 40% of (a) Curb the import of Nepali hydrogenated cooking oil, acrylic yarn,

its trade. India has suggested some changes in the treaty, which are as follows: copper wires, steel pipes and zinc oxide as this is hurting domestic production. (b) India has complained about cheap Chinese goods entering India through Nepal, a charge that Nepal denies. Area of disputes 10. 11. 12. Security concerns: Boundary dispute:The treaty of 1950:New Delhi is concerned about the use of Nepali The Boundary Committee to prepare Strip Maps Nepal is keen on reviewing some of the security soil by the Pakistani agency ISI for subversion activities in India. of the boundary areas. clauses of the 1950 treaty.

13. 14. 15.

Extremist activities :Water dispute: Trade Dispute:-

India and Nepal have decided to intensify the

crackdown on cross-border terrorist. It was decided to complete the detailed project report on Both the Prime Minister directed that the Interthe construction of the 6000 MW Pancheswar Dam on the Mahakali River. Governmental Committee on trade and transit and unauthorized trade, headed by the Commerce Secretaries of the two Governments, be convened soon to address certain issues in a constructive manner. 16. An agreement on science and technology was also finalized. The two Prime Ministers agreed that the large hydro-electric potential needed to be tapped in an environmentally sustainable manner on both side of the border.