New Delhi: Prime Minister Manmohan Singh on Wednesday offered his Nepali counterpart Girija Prasad Koirala an aid package to help rebuild the strife-torn Himalayan kingdom, officials said.
Analysts say the aid package is likely to include grants and soft loans worth millions of dollars to help rebuild infrastructure and schools wrecked by years of political instability and a Maoist insurgency.
Koirala, 84, is leading efforts to rebuild the shattered Himalayan kingdom since being appointed in April, after weeks of street protests forced King Gyanendra to restore parliament and end direct rule.
"They appreciated our problems. We explained our needs. They were very receptive, very supportive. I am fully confident that something constructive will come out of this meeting." — Nepal's Foreign Minister Ram Sharan Mahat.. "As far as the question of rebels giving problems to the government is concerned, we are in transition. These things happen but we are pretty sure the process will reach its logical end." — External Affairs Advisor to Koirala, Suresh Chalise
"India remains committed to give all support in undertaking infrastructure projects, capacity building projects which have to be determined as per the priorities of the Government of Nepal," Minister of State for External Affairs, Anand Sharma told reporters after the meeting.
"This (meeting) has given us adequate information about their needs and requirements. The Government of India will be working out a detailed package for Nepal which would be announced before the delegation returns," he added.
Foreign ministry officials say India is keen to assist in both long- and short-term projects, including funding the construction of roads, bridges and railways links ravaged by the conflict. India is a major donor to Nepal and supplies the bulk of essential commodities to its neighbour, whose economy - based on aid and tourism - was badly hit during the insurgency, in which more than 13,000 people were killed.
"The two countries are looking at ways of how India can help Nepal progress in various fields - this will be financially, militarily and democratically," Professor of International Relations at Jawaharlal Nehru University S D Muni said.
Analysts say India is also interested in the ongoing negotiations between the Kathmandu government and the Maoists which are aimed at disarming the rebels and bringing them into the political mainstream.
The Maoists, fighting for a communist state since 1996, and the new government have agreed to hold elections for a special assembly to prepare a new constitution that would decide the future of the monarchy.
New Delhi, which played a significant role in brokering the talks, is concerned about links between the Nepali rebels and growing numbers of Indian Maoist insurgents on its side of the porous border between the two countries.
Officials said India supported the dialogue between the Nepali government and the rebels, adding that it was important the Maoists give up arms.
"The Maoists must abandon violence and must accept the discipline of multi-party democracy to enter the mainstream of politics in Nepal," Indian Ministry of External Affairs spokesman Navtej Sarna told a news conference.
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