Nepal to introduce new Rs 100 currency note featuring Indian territories

India has contested Nepal's decision to print notes with an updated map which includes Lipulekh, Limpiyadhura, and Kalapani

Nepal recently announced the printing of a new Rs 100 currency note featuring a map that includes the Indian territories of Lipulekh, Limpiyadhura, and Kalapani, a move that has been contested by India.

In a meeting chaired by Nepali Prime Minister Pushpakamal Dahal Prachanda, the council of ministers decided to incorporate the controversial territories into the new map of Nepal, government spokesperson Rekha Sharma informed the media during a briefing on Friday.

Rekha Sharma, who is also the minister for communication, information, & technology, stated that the decision was made following a proposal from the Nepal Rastra Bank to update the map on the Rs 100 banknotes. The redesign, with the updated map, was approved during meetings held on April 25 and May 2.

"The government has authorised the Nepal Rastra Bank to replace the current map with the updated version on the currency note," Sharma stated in a telephonic conversation with ANI.

Background on dispute

Lipulekh, Kalapani, and Limpiyadhura had been included in India's November 2019 map.

Tensions between New Delhi and Kathmandu emerged after Nepal issued a political map in May 2020, which included the same territories.

Diplomatic relations came under further strain when Nepal handed over a diplomatic note to India objecting to the inauguration of a road linking Kailash Mansarovar via Lipulekh on May 8, 2020.

India's Ministry of External Affairs had responded to Nepal's objection, stating that the road, passing through Uttarakhand's Pithoragarh district, fell entirely within the Indian territory.

Does Nepal have a claim on the territories?

Nepal has asserted its claim based on the Sugauli Treaty of 1816. According to the treaty all territories east of the Kali (Mahakali) river, including Limpiyadhura, Kalapani, and Lipulekh, belong to Nepal.

The Sugauli Treaty, signed on March 4, 1816, between the East India Company and Guru Gajraj Mishra, delineated the boundary line of Nepal following the Anglo-Nepalese War of 1814–16.

India, however, has stated that the 1950 Treaty of Peace and Friendship between India and Nepal annulled the Sugauli Treaty.

Nepal argues that treaties such as the 1923 Nepal–Britain Treaty of Friendship reaffirmed its sovereignty during the era of British rule.

(With agency inputs)