Nepal plans to seek substantial Indian financial assistance for reconstruction and development during Prime Minister Balendra Shah’s proposed visit to New Delhi in late November, while pressing for progress on longstanding border disputes, energy cooperation, trade barriers and international air connectivity.
Officials at Nepal’s Prime Minister’s Office and Foreign Ministry expect Shah to visit on November 22 or 23, although neither government has announced the dates officially. His press adviser, Dipa Dahal, said the duration of the visit remained undecided. Kathmandu has yet to propose a specific date to New Delhi.
The proposed talks come as Nepal faces enormous reconstruction requirements following devastating floods on August 26. According to the National Disaster Risk Reduction and Management Authority, nearly 1,500 people died and more than 5,000 remained unaccounted for. Floodwaters in the Bhote Koshi and Trishuli rivers destroyed communities, hydropower facilities, roads and bridges, causing billions of dollars in physical damage.
A Nepali Foreign Ministry official said Kathmandu had sought a large assistance package even before the floods and wanted support with fewer conditions to facilitate implementation and deliver results quickly. Nepal has not disclosed the amount it intends to request. Finance Minister Swarnim Wagle has already discussed potential post-flood reconstruction assistance during a visit to India.
Beyond grants and concessional loans, Nepal wants progress on territorial disagreements involving Lipulekh, Kalapani and Limpiyadhura, which Kathmandu claims and which India regards as part of Uttarakhand.
Trade is another priority. Nepal wants an early review of the bilateral Trade Treaty, automatically renewed in 2023 for another seven-year period unless either side objects. Kathmandu also seeks relief from certification requirements imposed by the Bureau of Indian Standards on certain Nepali exports, including cement, steel, plywood, footwear, sanitary pads, diapers and electrical wires. Exporters have raised concerns over resulting procedural delays.
Nepal is also pressing for additional international air-entry routes through Indian airspace. About 90 per cent of international flights currently enter through the congested Simara corridor. Kathmandu has proposed routes through Janakpur, Bhairahawa and Nepalgunj, seeking better access for its international airports in Pokhara and Bhairahawa. India has cited security concerns and air-traffic management complexities in resisting direct, low-altitude routes.
The agenda may include hydropower projects, including West Seti (750 MW), Phukot Karnali (480 MW) and Seti River-6 (450 MW), in which India’s state-owned NHPC is involved. Uncertainty surrounds Phukot Karnali following an Indian Supreme Court ruling requiring NHPC to provide Nepal at least 21.9 per cent of the project’s electricity as free energy.
Officials also expect inaugurations of Indian-assisted infrastructure, including the Nepal Police Academy, a bridge in Darchula, the Bhairahawa integrated check post and a motorable bridge over the Mahakali River. Other reported proposals include the Dodhara Chandani check post, Lower Arun hydropower project, Siliguri-Jhapa petroleum pipeline, Koshi River project, Ayodhya-Janakpur railway and Indian support for Nepal’s artificial intelligence ambitions.
