Rail link, energy pact and quake aid mark busy phase in India–Nepal ties amid border talks

India and Nepal are moving on several fronts to deepen cooperation even as boundary issues remain on the agenda. A 136-km-long new rail line project is slated to further improve connectivity between the two countries and promote economic growth and development.

In a separate step, India’s Energy Secretary Pankaj Agrawal and his Nepal counterpart Gopal Sigdel signed a bilateral agreement. India has also decided to extend a financial package of Nepali Rs 1,000 crore (or USD 75 million) for reconstruction of infrastructure in districts affected by the 2015 earthquake.

On the political track, the resolution of the border dispute through diplomatic channels—along with a review of treaties wherever necessary—is part of the seven-point common minimum programme finalised by a seven-party coalition led by Maoist Centre chief Pushpa Kamal Dahal.

Nepal had previously raised its claims in 2020, when then prime minister K P Sharma Oli passed a map in Parliament showing the area as part of Nepal. Political voices signalled a preference for engagement over confrontation.

“CPN-UML doesn't believe that Nepal can progress or the interest of Nepalese people could be promoted by pursuing anti-India policy,” Dr Rajan Bhattarai, the party’s foreign affairs department chief and standing committee member, told PTI in an interview. In a cultural message underscoring ties, Saud said Lord Ram and Mata Sita symbolise “the profound cultural and civilisational linkage” between Nepal and India.

Financial oversight cooperation also featured in recent exchanges. A visiting delegation of Nepal’s Department of Money Laundering Investigation, led by Director General Pushpa Raj Shahi, attended a two-day meeting with officials from India’s Enforcement Directorate.

Taken together, connectivity projects, energy cooperation, reconstruction funding and dialogue on both border and financial issues outline the current contours of India–Nepal engagement.