Kathmandu

Nepal’s Foreign Minister Narayan Prasad (NP) Saud says India and Nepal are bound by shared history and culture, and the relationship between the two shouldn’t be viewed through the narrow prism of neighbour or trade ties.

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Speaking to WION correspondent Saloni Murarka exclusively, Saud spoke about Nepal seeking investments from India, and how India and China are important for Kathmandu’s economic development.

Here are some excerpts

WION: Can you elaborate on India-Nepal relations and how New Delhi is providing economic support

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NP Saud: India and Nepal are very old friends. We have cordial relations. And now, we are trying to do trade in hydroelectricity. We are seeking Indian investment in Nepal, especially in hydroelectricity production, and transmission. We want to sell electricity to India. They also need clean energy and we think that good funding can secure Nepal and India’s future.

WION: Nepal Prime Minister Pushpa Kamal Dahal is visiting India. Can you talk about the significance of the visit?

NP Saud: This is one of the high-profile visits of our prime minister and it will nurture a deepener understanding between the two leaders. Hope that pending issues will be resolved during the dialogue between Indian Prime Minister Narendra Modi and Nepal’s Dahal. We have a lot of agendas to discuss, like power production, power purchasing, connectivity, transit, and trade.

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WION: What are the key projects that Nepal is looking for investments from India?

NP Saud: We want to build a hydro project in Nepal. Hydroelectricity is one of the major sources of natural resources for Nepal and India, whose demand for clean energy is increasing. If we sell the power to India and Bangladesh, then it will change the dynamics of trade and the balance of payments. We need understanding between India, Japan and Bangladesh, which is a key factor. And India is a growing economy, so we are willing to have more and more Indian investments in Nepal.

WION: What is Nepal’s key focus on foreign relations?

NP Saud: Nepal is a peaceful country and has a long history of being a mature and independent nation. So, at the centre of our foreign policy, we believe in our independence, sovereignty, and maintaining good relations with the rest of the world, especially our neighbours. India is very close to us. Our political, social, and economic relations are strong, although we share an 1800-km border with India. New Delhi alone accounts for almost two-thirds of trade. So India is very important to us. China is also a good neighbour. We share a 1400-km border with them in the north. So, we want to strike a balance between both countries as it will be in our national interests to maintain cordial relations with both of them. We believe in the non-aligned movement and we follow the guidelines of the UN. And with India and China, they understand our position. We are involved with both countries in a reasonable way. Both countries are growing and their development is an opportunity for Nepal.

WION: There have been concerns about Nepal facing an economic crisis just like Sri Lanka. Can you elaborate on that?

NP Saud: Our priority is economic development. We will choose a viable project, which is large in scale, and will not take a risk. Such type of projects in any country requires a huge amount of grants. That’s okay. But we will not take while risk in seeking investments.

WION: Can you talk about the proposed China-Nepal rail project?

NP Saud: I don’t wish to speak about a specific project. Any project that is viable to Nepal and is in the interest of the Nepalese people, we’ll take it and both the countries are big in size. If they provide us with grants, then they are welcome. I don’t want to speak about a special project or a special nation.

WION: Can you talk about the US-Nepal ties?

NP Saud: We believe in non-alignment, and our foreign policy is devised as such. We are not a part of any military alliance. We believe in maintaining economic cooperation and friendship. We have good relations with the US and other Western countries. 

WION: Is Nepal requesting China to invest in railways via grants?

NP Saud: If any country is coming forward and promising to develop big projects through grants, then they are welcome to do it.

WION: Will Nepal be part of China’s Belt and Road Initiative (BRI)?

NP Saud: Principally, our government has already decided to take a project under the BRI. But we are prioritising only those projects which are important to us. We are not interested in taking loans to fund BRI projects. If any big project is done through grants, then they are welcome.

WION: How much is border issue important when it comes to diplomatic relations

NP Saud: India and Nepal share historical relations, dating back to ancient times. There are people-to-people, government-to-government relations, and nation-to-nation relations. I don’t think that we can define our ties based on a single/ narrow agenda. With regard to border issues, working groups have already working on it. And in most places, the issue has been solved, except places like Kalapani (India’s Uttarakhand border), and Susta (India’s Bihar border). We want to start negotiations and with a proper diplomatic process, we will be able to resolve the boundary problem with.

WION: How do you see the US-China rivalry impacting Nepal

NP Saud: There was some confusion about the US-funded Millennium Challenge Corporation (MCC)-Compact programme. It’s a fairly small economic package and I don’t think that such type of package has any economic problem for Nepal. India and China are big players in the region. I think that they are economically grooming and they understand our geopolitical location. And so does India. Both countries are our friends.

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