PM Baburam in New Delhi: Nepal-India Sign Agreements
A joint statement by Nepal-India in New Delhi on agreements between the two countries during PM Baburam Bhattarai's official visit.
Joint Statement- Fact Sheet on MOU/Agreements signed during the visit of PM Dr. Baburam Bhattarai to India. Signed & released on October 21, 2011:
(i) Memorandum of Understanding between Government of The Republic of India and Government of Nepal regarding Indian grant assistance for the Goitre Control Programme in Nepal
A Memorandum of Understanding between Government of The Republic of India and Government of Nepal regarding Indian grant assistance for the Goitre Control Programme in Nepal was signed today (October 21, 2011). Foreign Secretary Shri Ranjan Mathai signed the Memorandum of Understanding on behalf of Government of India and Mr. Mr. Purushottam Ojha, Secretary, Ministry of Commerce and Supply, Government of Nepal signed the agreement on behalf of Government of Nepal.
Under the Memorandum of Understanding, Government of India will provide ` 1.875 Crores (Nepali Rs.3 Crores) to Government of Nepal for the control of Goitre and other Iodine Deficiency Diseases in Nepal under the heads of Re-iodisation Subsidy, Packing Subsidy, Transportation Subsidy and Advocacy Subsidy. The Government of Nepal shall procure iodised granular salt from India for distribution in various parts of Nepal focusing on 22 districts categorized by Nepal as remote and inaccessible. The implementation of the Programme will be monitored by a Programme Monitoring Team of four members, consisting of two representatives of Government of India and two representatives of Government of Nepal. During the period 1973-2010, Government of India has provided grant assistance of ` 41 Crores to Government of Nepal for the control of Goitre and other iodine deficiency disorders in Nepal. Iodine Deficiency Diseases are a major health problem and it is hoped that this assistance will help reduce incidence of Goitre and other Iodine Deficiency Diseases in Nepal.
(ii) Dollar Credit Line Agreement between Government of Nepal and Export-Import Bank of India
A US$ 250 million Dollar Credit Line Agreement between Government of Nepal and Export-Import Bank of India was signed today (October 21, 2011). Chairman and Managing Director of Export-Import Bank of India, Shri T.C.A. Ranganathan and signed the Agreement on behalf of Export-Import Bank of India and Shri Lal Shankar Ghimire, Joint Secretary, Ministry of Finance signed the Agreement on behalf of Government of Nepal.
The credit line will be used to finance infrastructure projects such as highways, airports, bridges, irrigation, roads, railways and hydropower projects and carry a concessional rate of interest of 1.75% p.a., with repayment period of 20 years, inclusive of 5 years moratorium.
It may be recalled that during the visit of the President of Nepal, H.E. Dr. Ram Baran Yadav in February 2010, Government of India has agreed to extend the line of credit of US$ 250 million from EXIM Bank of India to the Government of Nepal on similar terms and conditions as the earlier Line of Credit of US $ 100 Million extended to Nepal.
(iii) Agreement between the Government of Nepal and the Government of India for the Promotion and Protection of Investments
A Bilateral Investment Promotion and Protection Agreement between the Government of the Republic of India and the Government of the Federal Republic of Nepal was signed today. Hon'ble Finance Minister has signed the agreement on behalf of India and Mr. Anil Kumar Jha, Minister for Industry on behalf of Government of Nepal.
The Agreement seeks to promote and protect investments from either country in the territory of the other country with the ultimate objective of increasing bilateral investment flow. The agreement requires each country to encourage and create favourable conditions for investors of the other country to make investments it its territory and to admit investments in accordance with its laws.
The term investment includes every kind of asset including intellectual property rights in accordance with laws and regulations of the country in which the investment is made. Principles of Most Favoured Nation Treatment and National Treatment (NT) have been asserted in the agreement. Investments from either country in the territory of the other country are to be accorded NT and MFN treatment which means that the investment shall be provided treatment which shall not be less favourable than that provided by the country to investments of its own investors or investors from any other country. Besides, investors are to be provided MFN treatment in respect of returns on the investment.
Provisions have also been made in the agreement for grant of compensation to the investors whose investments suffer losses owing to war, armed conflict, a state of national emergency, etc. and such investors shall be accorded treatment by the host country, no less than the treatment accorded to its owns investors or investors of any third state.
The Agreement provides that nationalisation or expropriation of investments shall not be resorted to except in public interest and in accordance with law on a non-discriminatory basis and against fair and equitable compensation. The agreement also provides for free repatriation of funds of an investor of either country.
The agreement provides elaborate dispute resolution mechanism to guide settlement of disputes between and investor and a host Government as well as between the two Governments. Dispute resolution mechanism includes resource to negotiations, conciliation and international arbitration.
The Agreement shall remain in force for a period of ten years. Thereafter, it shall be deemed to have been automatically extended unless either Contracting Party gives to the other Contracting Party a written notice. With respect to investments made prior to the date of termination of the Agreement, the provisions of the Agreement shall continue to be effective for a further period of ten years from the date of its termination.
It is hoped that the Agreement would serve as a catalyst in boosting investment flows between the two countries.
October 21, 2011
> Agreement between the two Governments for the Promotion and Protection of Investments, signed by H.E. Mr. Anil Kumar Jha Minister for Industry, Nepal & Shri Pranab Mukherjee, Minister of Finance, India
> MOU between the two Governments regarding Indian Grant Assistance for Goitre Control Programme in Nepal Mr. Purushottam Ojha, Secretary, Ministry of Commerce & Supply, Nepal & Shri Ranjan Mathai, Foreign Sceretary, India.
> Dollar Credit Line Agreement between Govt. of Nepal and Export-Import Bank of India Mr. Lal Shanker Ghimire
Joint Sceretary, Ministry of Finance, Nepal & Shri TCA Rangathan, Executive Director EXIM Bank, India
A version of this text is available here.
Posted by Editor on October 22, 2011 8:50 AM