India-Nepal Current Affairs

Postal Highway Project: India grants Rs 470 million to Nepal

India has released additional Rs. 470 million (Nepali) for Phase I of Postal Highway Project being constructed in Southern Plains of Nepal. The amount released will help to maintain fund liquidity for ongoing construction of 14 road packages under Postal Highway Project.

Key Facts

India is providing financial assistance to Nepal since 1950 for infrastructure development as part of its multi-sectoral India-Nepal Economic Co-operation Programme. With release of recent additional funds, India so far has released Rs 2.35 billion to Nepal out of total grant assistance of Rs. 8.00 billion committed to implement 14 packages under Packages 2-6 of Phase I of Postal Highway Project. The Package 1 of the Project comprising two road sections Dhangadhi-Bhajaniya-Satti road and Lamki-Tikapur-Khakraula have already been completed with help of India’s grant assistance worth Rs 1.02 billion. The two roads were opened for service in January 2017.

Postal Highway

It is also called Hulaki Rajmarg which runs across Terai region of Nepal, from Bhadrapur in east to Dodhara in west, cutting across entire width of the country. It is oldest highway in Nepal constructed by Juddha Shumsher Jung Bahadur Rana and Padma Shumsher Jung Bahadur Rana to aid transportation and facilitate postal services throughout the Himalayan nation.

Month: Categories: India Current Affairs 2018


9th meeting of EPG on Indo-Nepal relations concludes in Kathmandu

The ninth and final meeting of Eminent Persons Group (EPG) on India-Nepal relations concluded in Kathmandu, capital city of Nepal. During this two day meeting, representatives from India and Nepal deliberated up on various bilateral issues including 1950 Peace and Friendship treaty, trade, transit and border.

Key Facts

During the last meeting, EPG successfully prepared joint report which will be submitted to Prime Ministers of both the countries. It has agreed to update all the bilateral treaties and agreements reached in past between India and Nepal in line with the present reality of the two countries.

EPG members from India included Bhagat Singh Koshyari, Mahendra P Lama, Jayanta Prasad and B C Upreti and from Nepal included Bhekh Bahadur Thapa, Nilambar Acharya, Suryanath Upadhyay and Rajan Bhattarai. Members from India include Bhagat Singh Koshyari, Mahendra P Lama, Jayanta Prasad and B C Upreti


The EPG was formed in January 2016 by Governments of Nepal and India for reviewing the entire gamut of Nepal-India relations and update bilateral agreements and treaties. It is a joint mechanism consisting experts and intellectuals from India and Nepal. There are four members each from Nepalese and Indian sides in the group.

It is mandated to review various aspects of the bilateral relations including Nepal-India Friendship Treaty 1950 and provide suggestion on ways to reshape bilateral between the two countries. During earlier meetings of EPG, Nepali side had presented facts regarding need to review Nepal-India Peace and Friendship Treaty of 1950 so as to update is as required by time and situation.

1950 India-Nepal Treaty of Peace and Friendship

The treaty is a bilateral pact between India and Nepal aimed at establishing close strategic relationship between two South Asian neighbors. It was inked on July 31, 1950 at Kathmandu by then Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and then Indian ambassador to Nepal Chadreshwar Narayan Singh.

The treaty has 10 articles. It permits free movement of people and goods between two countries and close relationship and collaboration on matters of defence and foreign affairs. It envisages for eternal peace and friendship between two nations and recognizes and respect complete sovereignty, territorial integrity and independence of each other.

According to Articles 6 and 7 of the treaty, the two countries agree to grant, on reciprocal basis, to citizens of one country in territories of other, same privileges in matter of residence, ownership of property, participation in trade and commerce, movement and other privileges of similar nature.

This enables the Nepali and Indian nationals to move freely across border without passport or visa, live and work in either country and own property or do trade or business in either country. There is a significant number of Nepalis (in millions) living, owning property and working or doing business in India as beneficial aspect of treaty for Nepal. Similarly, many Indians live, own property and do business in Nepal.

Month: Categories: India Current Affairs 2018