The State Bank of India (SBI) will be investing a total of Rs 80 billion in the Arun III hydropower project of Nepal, which has 900 megawatts (MW) electricity production capacities.
Nepal and China have proposed to ink a memorandum of understanding to have a power trade agreement during the next high-level political meeting between the two countries.
The Nepal-India cross-border oil pipeline project — Motihari-Amlekhgunj petroleum pipeline project, previously called Raxaul-Amlekhgunj oil project — has been expedited with the active participation of Indian Oil Corporation.
In the first phase, trains will be operated on 34-km stretch from Kurtha of Dhanusha district in Nepal to Jaynagar of India.
The question of whether Nepal should go ahead with plans to build a dam with a Chinese firm has become entwined in the wider debate about whether the country should align itself with India or China.
India is very keen to explore the shared future in energy network along with three key neighbouring countries, Bangladesh, Myanmar and Nepal.
China has opened a strategic highway in Tibet to the Nepal border which could be used for civilian and defence purposes, a move that Chinese experts say will enable Beijing to make forays into South Asia, according to a media report today.
India is willing to bear nearly 65 per cent cost of the 5,000-mw Pancheshwar multi-purpose project in Nepal that will make the latter powersurplus and control floods, an official said.
Nepal and India has agreed to use the Bhimnagar-Bhantabari small customs checkpoint in the eastern region as an alternative to the Biratnagar-Jogbani customs to keep trade movement between two countries operating smoothly.
Vice President M. Venkaiah Naidu has said that India is partnering to create physical infrastructure and establish social institutions in Nepal.