Security for trade to dominate Indo-Nepal talks

Security assurances for business and concerns about China’s increasing presence in the Terai region, the Indo-Nepal border area, will dominate discussions during External Affairs Minister Pranab Mukherjee’s first trip to Nepal after the new government led by Pushpa Kumar Dahal alias Prachanda took charge there. Mukherjee has gone on a two-day visit to Nepal on Monday.

According to top sources in the ministry, although Maoist leader Prachanda is now the prime minister of the erstwhile Hindu kingdom, security for Indian business operations remains a matter of concern as a large section of the guerrilla Maoist forces is yet to fully integrate with the mainstream democratic system.

“We will offer all possible help to the new Nepal government on the economic front. We are ready to talk to the Nepalese government on sector-specific demands. But the government has to assure us that Indian investments in Nepal will enjoy full security,” said a top official.

During the Maoist upsurge, many Indian business establishments were forced to temporarily suspend their works and faced the wrath of the rebels. The increase in the activities of the Pakistani intelligence agency, ISI, in Nepal is also another area of concern for the Manmohan Singh government.

While Mukherjee will try to extract a security assurance from Prachanda, he is expected to raise the issue of China’s increasing presence in Nepal, especially in the sensitive Terai region. According to intelligence reports, of late, the region has been witnessing a growth of ‘China Study Centres’ where Chinese literature and other study materials are taught to the local people as a part of the propaganda war. A large number of Chinese nationals are also present at any given time in the Terai region.

India also observes that business ties between Nepal and China are also on a rise. “In this globalised world, any country is free to do business with any country. But we would like Indian companies to address the demands of the Nepalese people and their government in a better way than other foreign companies,” said a top official.

Nepal hosts Indian ventures in manufacturing, services (banking and insurance) and tourism industries. UTL, a consortium of VSNL, TCIL, MTNL and a local company, was the first private sector player in Nepal’s telecommunication sector. Indian investors also include Dabur, ITC, Hindustan Lever, CONCOR, SBI, PNB, LIC, Oriental Insurance, Asian Paints, and Colgate-Palmolive.