Underlining the special relationship between the two nations,India and Nepal on Tuesday signed four pacts,including one on opening up air traffic and another on building of railway infrastructure at five border points.
Prime Minister Manmohan Singh,who held detailed discussions on the peace process in that country and bilateral relations with visiting Nepalese President Ram Baran Yadav,also offered to supply foodgrains to tide over a food shortage and a soft loan of 250 million dollars via the EXIM bank to Nepal. He offered Indias assistance in Nepals peace process and Constitution-drafting which he hoped would be concluded within the stipulated time.
India offered 50,000 tonnes of wheat,20,000 tonnes of rice and 10,000 tonnes of yellow peas,sources said and expressed its readiness to supply 2,000 more tonnes of wheat,if required.
With the signing of the Air Services Agreement,both countries would now be entitled to designate any number of airlines for operation of mutually-agreed services. Currently,the designated airlines of each side are entitled to operate 30,000 seats per week to and from specified destinations.
The MoU on development of railway infrastructure provides for improvement of rail connectivity and upgradation of existing lines between the two countries,leading to better access to the Terai region.