New Delhi: Nepal's Prime Minister KP Sharma Oli’s decision to visit China before India after assuming office in 2024 had reignited speculations about the trajectory of India-Nepal bilateral ties. While some analysts see this as a shift in Kathmandu’s diplomatic priorities, New Delhi has downplayed concerns, maintaining that relations between the two South Asian neighbours remain strong.
"I can tell you that the relations between the two countries remain good and strong and we want to further strengthen these," External Affairs Ministry spokesperson Randhir Jaiswal said during his regular media briefing here on Friday. Jaiswal’s comments come in the wake of the visit of Munu Mahawar, the new Additional Secretary (North) who looks after Nepal in the Ministry of External Affairs, to Kathmandu earlier this week.
"During the course of his visit, he held discussions with senior officials of Nepal on how to further strengthen India-Nepal ties," Jaiswal said. "There were discussions on other issues as well."
The bilateral relationship between India and Nepal has seen some interesting developments since Oli assumed office as Nepal’s Prime Minister for the fourth time in July 2024. Oli’s return to power has been marked by efforts to balance Nepal's diplomatic engagements with both India and China.
Upon his appointment, Prime Minister Oli emphasised his commitment to strengthening Nepal-India relations. In September 2024, on the sidelines of the 79th United Nations General Assembly in New York, Prime Minister Narendra Modi held a bilateral meeting with Oli. Both leaders described the meeting as very good.
Economic collaboration, particularly in the energy sector, has been a focal point of India-Nepal relations during Oli’s tenure. In October 2024, Nepal sought Indian investment for its hydropower projects, aiming to boost electricity generation and export surplus power to India. This initiative aligns with India’s goal of achieving net-zero emissions by 2070 and reflects Nepal’s target of attaining a 28 GW generation capacity within the next decade.
In December 2024, Prime Minister Oli visited China to seek momentum for infrastructure projects under Chinese President Xi Jinping’s pet Belt and Road Initiative (BRI). This visit marked a departure from the traditional practice of Nepalese leaders making their first foreign visit to India after assuming office. The move was interpreted as an effort to recalibrate Nepal’s economic ties with China and lessen reliance on India, which currently dominates Nepal’s trade landscape.
During the course of his visit to Nepal this week, Mahawar led the Indian delegation in the fifth meeting of the Joint Project Monitoring Committee (JPMC) in which both sides carried out a comprehensive review of the progress of Government of India-assisted post-earthquake reconstruction projects in housing, education, health and cultural heritage sectors in Nepal.
After the April 2015 Himalayan earthquake in Nepal, India committed $250 million grant assistance for post-earthquake reconstruction in Nepal. The grant was allocated in four different sectors – housing ($100 million), education ($50 million), health ($50 million) and cultural heritage ($50 million). The JPMC mechanism was set up in August 2017 to monitor the progress of these projects.
According to a statement issued by the Indian Embassy in Nepal following the fifth JPMC meeting, both sides acknowledged the successful completion of the projects agreed under the housing sector in 2021 and the education sector in 2024.
"In health and cultural heritage sectors, both sides expressed satisfaction on the progress achieved and agreed to expedite the early completion of projects under these sectors," the Embassy stated in a press release. "Since the last JPMC meeting in October 2023, the Government of India has handed over 26 projects in the education sector including, Tribhuvan University Central Library in Kathmandu, 32 projects in the health sector and three projects in the cultural heritage sector, amounting to NPR335.08 crore. In addition, 43 projects in the health sector and nine projects in the cultural heritage sector amounting to NPR173.49 crore have been completed during this period."
Another important outcome of Mahawar’s visit was his meeting with Nepal Foreign Minister Arzu Rana Deuba. According to reports, Deuba sought an early convening of the Border Working Group (BWG) between India and Nepal.
The BWG mechanism was established during Prime Minister Narendra Modi’s visit to Nepal in 2014. Its mandate is to carry out fieldwork along the Nepal-India border, including the construction, restoration and repair of boundary pillars. The BWG functions at the director general-level of the Department of Survey.
The last BWG meeting was held in 2019 during which both sides agreed to complete the remaining boundary issues by 2022. However, due to the COVID-19 pandemic, no meeting of the BWG has been held since then.
"Several important bilateral meetings have already been held and some are in the pipeline," a report in the Kathmandu Post quoted a Nepal foreign ministry official as saying. “There is a shared understanding to gradually resume and conclude all such meetings.”
Citing data from the Department of Survey, the Post report stated that the two countries have installed 8,554 pillars along the border of which, 1,325 are missing, and 1,956 are partially or fully damaged. "These pillars get damaged due to natural reasons like floods," Ranjit Rae, former Indian Ambassador to Nepal, told ETV Bharat. "There also cases of theft." Rae said it will be good if the BWG mechanism starts functioning. "Why only BWG? All mechanisms between India and Nepal should keep functioning," he said.
However, at the end of it all, despite spokesperson Jaiswal’s assertion that India-Nepal relations remain strong, speculations remain rife about when Prime Minister Oli is likely to visit India. Though New Delhi has not made any comment on this till now, reports in Nepal media claim that Oli is yet to receive an invitation from India.
It is from this perspective too that Mahawar’s visit to Nepal can be seen.
