India Intelligence Report

   India Offers Rs. 1000 cr Deal to Nepal

  • India offers Rs. 1000 crore package

  • India promises accelerate infrastructure projects

  • Terrorists have objected to the deal and promised more violence

India offer visiting Nepal Prime Minister Girija Prasad Koirala a deal worth Rs. 1000 crores (USD 217 million) that would include a one time grant, waiver of dues for supplied military equipment, reworking of loans, and subsidized fertilizer.

Koirala had appealed to India for the resumption of economic and military aid suspended when King Gnanendra was running the country with an iron fist. With the restoration of democracy, India feels that it needs to aid Nepal generously so it will become economically and militarily stable.

Under the terms of the agreement, India will immediately release Rs. 100 crores (USD 21.7 million) as a one time grant. It will forgive dues for military equipment shipped to Nepal under Gnanendra, ask Indian Oil Corporation to rework loan payment schedules, deliver 25,000 tons of fertilizer, and increase its annual Nepal aid budget from Rs. 65 crores to Rs. 150 crores. India will also accelerate infrastructure projects such as roads, airports, and rail linkages.

A very happy Koirala invited Prime Minister Manmohan Singh to visit Nepal which he accepted immediately.

The other issue that the country dealt with is the vexing terrorism based on Chinese strong man Mao Zedong’s violent theories of social engineering. The two nations released a statement that clearly rebuked this philosophy and mode of negotiation. The statement said “the success of democracy lay in creating an atmosphere free of violence and coercion, and respect for the law.”

Nepalese terrorist leader Pachanda (which is the nom de guerre of Pushpa Kamal Dahal) reacted swiftly to this statement accusing India of meddling with Nepal’s internal affairs. Like all charlatans, he tried to infuse fear of a “deep conspiracy” to destroy the pact between his organization and the Seven Party Alliance (SPA). He accused the SPA of disingenuous conduct “When there should be a political settlement first in Nepal, Koirala goes to India to bring money, an assistance package, and hydro-power pacts.”

The biggest fear of the terrorists is that the economy may pick up and the people may question the need for a violent overthrow of a system that works. They are wary of a popular Parliament lest it become too powerful. They do not want the people to think that the interim Government to be acceptable outside the nation so it can implode. What they want is an interim Government that they can control that can be beyond accountability, control, and influence of the people, political system, or the entity of a King.

Prachanda said that he had warned Koirala that “it won’t be good if he made a deal” and wondered “why they (political parties and India) are trying to bypass us?” The answer is simple. Prachanda is a violent man wont to killing at will and disrespectful of any law and order. Such behavior is unacceptable in a democracy. Till he realizes that and shuns his violent campaign, he will be out of all solutions.

At the same time, peace in Nepal cannot return unless the terrorists are subjugated. India must accelerate its economic and military aid to Nepal.