India extends $750-mn line of credit for quake relief in Nepal

India today signed an agreement extending a line of credit of $750 million for post-earthquake reconstruction of Nepal, in a step that would bring relief to millions of people affected by last year's devastating earthquake.

India also agreed to extend additional line of credit for new projects such as Phase-2 of Terai project, roads, power transmission lines, substations and a polytechnic in Kaski.

Prime Minister Narendra Modi and his Nepalese counterpart Prachanda today held extensive and productive discussions, covering the full spectrum of bilateral cooperation.

Modi conveyed to PM Prachanda of India's abiding faith in Nepal and its people and that the country stood ready to strengthen its development partnership with Nepal, adding that whatever this country does, it would do as per the priorities of the people and government of Nepal.

''Open borders between our countries provide great opportunities for cooperation and interaction among our people,'' Modi said, adding, ''We also agree that our security interests are closely aligned and inter-linked.''

''We must also continue to guard against elements that seek to misuse the border.''

The two sides pledged continued close cooperation between defence and security agencies of the two countries, which, they pointed out, is important for growing trade, economic, cultural and development partnership, and for the well being of our two peoples.

''Trade, connectivity, in all its dimensions development projects and mutual investments are key pillars of our partnership with Nepal.

''India's initiatives for open sky, cross-border power trade, transit routes, cross-border connectivity would directly benefit Nepal and help strengthen our economic partnership.

''Nepal and India are also closely working on a range of areas of economic engagement including energy and water resources sectors, '' Modi said.

Besides, he said, the two sides agreed to push for speedy and successful implementation of the ongoing hydro-power projects, and development and operationalisation of transmission lines.

This would be a source of much needed energy, and revenue generation for Nepal.

We have also agreed on the need to add depth and vitality to links between our societies.

We have agreed to show case our shared Buddhist heritage, and focus on the development of Ayurveda and other traditional systems of medicine, Modi said, adding that the two countries will focus on close monitoring and time bound completion of all development projects.

And, as Nepal undergoes a political transition, India pitched for implementing the country's Constitution by accommodating aspirations of all sections and assured Kathmandu of all possible support amid China's efforts to gain ground in the Himalayan nation.

It is Prachanda's first visit to India after becoming prime minister for the second time after KP Sharma Oli quit in July following fresh political turmoil due to the protest of Madheshi community against the new Constitution.

The two countries also decided to continue cooperation in areas of defence and security.

In a statement to media after the talks, Modi said India hoped Nepal would be successful in implementing the Constitution through inclusive dialogue, accommodating the aspirations of all sections of its diverse society.

''As immediate neighbours and close friendly nations, peace, stability and economic prosperity [Shanti, Sthirta aur Samrudhi] of Nepal is our shared objective,'' the Prime Minister said in the presence of  Prachanda.

On his part, the Nepalese Prime Minister said his country has nothing but ''goodwill'' for India and that destinies of both the countries are ''interlinked''.