&imwidth=896&imheight=504&format=webp&quality=medium "Nepal eyes $2bn financial package, fresh air routes during PM Balen Shah's upcoming India visit")
New Delhi: Nepal’s Prime Minister Balendra Shah is expected to visit India from 22 to 24 November, with Kathmandu seeking new aviation routes and a financial package of around $2 billion.
The three-day trip will be Shah’s first bilateral visit since he took office in March 2026, following elections that brought his Rastriya Swatantra Party to power after Gen Z-led protests. He earlier travelled to New York for the UN General Assembly, but this will be his first official engagement with a neighbouring country. The last Nepalese prime ministerial visit to India was by Pushpa Kamal Dahal “Prachanda” in June 2023, making this the first such trip in more than three years.
Also read | US Northwest Governors host Diwali at Capitols as festival celebration begin globally
Preparations advanced after Indian Foreign Secretary Vikram Misri’s two-day visit to Kathmandu on 4-5 November. FS Misri met Prime Minister Shah, Foreign Minister Shisir Khanal and Foreign Secretary Amrit Bahadur Rai. Discussions covered connectivity, trade, energy, development cooperation and people-to-people ties. A joint statement noted progress on bilateral initiatives and possible outcomes for the forthcoming high-level visit. Shah thanked India for its rapid response to destructive flash floods in August 2026 and described the planned trip as one he hoped would be “result-oriented.”
Nepal has prioritised additional air-entry routes through Indian airspace. Nepali officials want better access for the international airports. Most international flights currently enter via a single congested corridor over Simara. Kathmandu has long sought points near Janakpur, Bhairahawa and Nepalgunj. Progress on these routes is seen as essential to linking the airports more effectively with Indian cities and boosting tourism and trade.
Also read | EU and India agree to closer research ties under Horizon Europe
On the financial side, Nepal is seeking an assistance package exceeding $2 billion, comprising concessional lines of credit (around $1 billion), grants (roughly $500 million) and further support for post-flood reconstruction of transmission lines, roads and other infrastructure. The package, if agreed, would build on existing Indian lines of credit and regular grant assistance.
Energy cooperation, including hydropower projects and cross-border electricity trade, transit arrangements and possibly border issues – such as areas around Lipulekh, Kalapani and Limpiyadhura – are also expected on the agenda. Several India-assisted projects, including the Nepal Police Academy at Panauti and integrated check posts, could be inaugurated or advanced.
