As it is well known, India accords utmost priority to making Nepal prosperous, along with its other neighbours. Without peaceful, democratic and prosperous neighbours, it would be difficult for India to emerge as dominant global power. It will be costly for India to live with neighbours comfortably if they are conflict-ridden, autocratic and poverty-stricken.
Towards maintaining peace, Delhi looked quite eager to support Nepal’s peace process. It was at the initiative of Delhi that the 12-point agreement was signed between the Maoists and the political parties of Nepal in 2005. But after the Comprehensive Peace Agreement was signed between the Government of Nepal and the Unified Communist Party of Nepal (UCPN(Maoist) on November 21, 2006, the United Nations Mission in Nepal (UNMIN) was given the responsibility to monitor the disarmament of Maoist rebels and help conflict-torn Nepal to regain peace. Unfortunately, UNMIN failed to meet some of those aspirations despite the extensions of its working period for a number of times, ultimately packing up and leaving Nepal on 15 January 2011.
With only a month’s time left for the new constitution to be written, the Indian External Affairs Minister suggested a logical conclusion of the peace process at the earliest in cooperation with all important political actors. Meaning the constitution writing and peace process should be completed by the deadline of 28 May, 2011. It also means that the activities related to reintegration and rehabilitation of the Maoist combatants should be completed before the deadline.
As peace is inseparable with security, there is a greater need to create secure environment both within the country and in the neighbourhood. Ever since the People’s War was launched by the UCPN (Maoists) in 1996 (in which over 16,000 people were killed), the security environment in the country has not improved to a meaningful extent despite the fact that the Constituent Assembly Election was held in 2007 and the monarchical institution was replaced by the republican set up. Still armed groups have been operating in several parts of the country. Killings, abductions and forced donations are the order of the day. Most of the industries are closed partly due to the long-hours of load shedding and partly due to the labor strike. As a result, unemployment problem has become massive. Amidst this moment of chaos, the movement of the people is largely restricted in the Terai region bordering India and also in the eastern hill region of Nepal.
In fact, India now wants concrete action from Nepal for the improvement of Nepal-India relations, which many believe to have been shattered. In order to bring the relation on right track, the Indian side wants formalization of Bilateral Investment Protection and Promotion Agreement (BIPPA) to ensure protection of Indian investment in Nepal.
Against the above background, the remarks made by the Indian External Affairs Minister that security was overriding concern for India needs to be taken seriously. To him, terrorism was a common threat to peace, stability and economic development of both Nepal and India. He also added that the smuggling of fake Indian Currency Notes (FICN) to India through the Nepali territory was counter-productive and it was against the interests of both the countries. In order to address some of these problems, he expressed the need for increased cooperation between the security agencies of the two countries for which he also wanted to formalize the revised Extradition Treaty and Mutual Legal Assistance Treaty (MLAT). In addition, he wanted the formalization of boundary strip maps for the Nepal-India border covering 98 percent of the total boundary for improving boundary management activities.
For the last several years, no new joint venture project has come from India to Nepal. And even those joint ventures which are in operation in Nepal increasingly feel insecure. More recently, the hydropower projects with Indian investments, including the GMR Group, working on Upper Karnali and Upper Marshyangdi have been targeted. The United Telecom Limited (UTL) has also been facing problems. So the External Affairs Minister sought protection of all the Indian investors in the country who have been providing capital and employment opportunities to a sizeable population in Nepal.
In fact, India now wants concrete action from Nepal for the improvement of Nepal-India relations, which many believe to have been shattered. In order to bring the relation on right track, the Indian side wants formalization of Bilateral Investment Protection and Promotion Agreement (BIPPA) to ensure protection of Indian investment in Nepal. As the largest investor in Nepal, India also demands formalization of the Double Taxation Avoidance Agreement (DTAA).
Furthermore, the Indian External Affairs Minister SM Krishna did not come to Nepal just to talk to the Nepali side, but he meant some concrete business. Some of his activities are crucial for further consolidation of Nepal-India relations. In this context, apart from inaugurating the new Chancery building at the Indian Embassy, he also laid the foundation stone for the construction of Integrated Check Post (ICP) with Indian assistance worth Rs 13.7 million in Birgunj (Nepal). Significantly, the counterpart of similar ICP is being constructed across the Nepal-India border at Raxaul (India). The foundation stone for the construction of 53 km Birgunj-Thori road was also laid. This is one of the 19 roads totaling 605 kms under construction under Phase 1 of the Terai Roads project with Indian government assistance of Rs 11.00 billion. Some of these projects are important not only for providing physical infrastructure to the people of Nepal but also for developing connectivity between Nepal and India.
About the Indian concerns, the Nepali Prime Minister Jhalanath Khanal tried to assure the Indian External Affairs Minister that the Indian security issues would be addressed duly. Besides, he also assured that the Nepali territory would not be used for any anti-India activity. Apart from these issues the PM also informed that they were awaiting approval from the parliament concerning the revised extradition treaty and the mutual legal assistance pact.
It is a positive gesture that the Nepali PM and other dignitaries in Nepal have expressed concern about Indian sensitivities in Nepal. However, Nepal needs to reciprocate not through assurances, but through action in all such fronts as meeting the deadline of writing the constitution, providing security and protection to the Indian diplomats, giving due security to the Indian investors and joint ventures in Nepal and discouraging elements using Nepali soil against anti-Indian activities.
However, a weak government and fluid state of law and order situation in many parts of the country add to the woes of Nepal. Amidst these problems, a section of the Nepalis opposes any positive move from the Indian side, be it in development and other activities. This is a serious challenge that India has been facing in Nepal. In such a situation, there is perhaps very little hope for the government of Nepal to reciprocate to the Indian concerns through action at least in foreseeable future.
Writer is an ICCR Fellow and Professor of Economics in Nepal
dr.hbjha@gmail.com
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