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This is an archive article published on October 27, 2011

Nepal PM Bhattarai threatens to quit over deal with India

Nepal Prime Minister Baburam Bhattarai has threatened to resign if his party,the Unified Communist Party of Nepal-Maoists (UCPN-M),refused to endorse the Bilateral Investment Promotion and Protection Agreement he signed with India recently.

Nepal Prime Minister Baburam Bhattarai has threatened to resign if his party,the Unified Communist Party of Nepal-Maoists (UCPN-M),refused to endorse the Bilateral Investment Promotion and Protection Agreement (BIPPA) he signed with India recently.

The threat followed acrimonious exchange between two rival groups at the party’s standing committee meeting that concluded on Wednesday. The issue,however,was stalled for a few days as it was decided to have the matter discussed by the Central Committee of the party on November 3.

“Since the standing committee could not come to any conclusion on the issue,the Central Committee will take it up,” said Barshaman Pun,a standing committee member and Finance Minister who was part of the official delegation led by the Prime Minister to India.

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Prime Minister Bhattarai was taken aback and ‘angry’ when even party chief Prachanda backed the deal only halfheartedly,according to those who attended the standing committee meeting. “I had suggested BIPPA should be signed as a package deal only if India also signed the Double Taxation Avoidance Agreement,” Prachanda claimed. Bhattarai,however,explained that India has agreed to sign the DTAA and Finance Minister Pranab Mukherjee was expected to visit in near future to formalise the deal.

The explanation apparently did not pacify the agitated members. “As a conciliatory formula,Prachanda asked Bhattarai not to insist on resignation and the dissidents not to air their grievances in public until the Central Committee took a clear view on the subject,” a leader told The Indian Express.

Prachanda’s response came soon after the Prime Minister said he would insist on the agreement being put for vote with the threat that he will not stay even for a second if it was not endorsed.

Earlier,the standing committee had asked Bhattarai not to sign any major agreement during his goodwill visit that concluded on October 23. On his return,he had to face black flag demonstration,with some calling him an “Indian agent”.

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What made his position weaker — apart from Prachanda’s refusal to back him on the issue — was Deputy Prime Minister and Foreign Minister Narayankaji Shrestha ‘Prakash’ stand. He informed the standing committee that he was opposed to it the way it happened. Standing committee members including senior vice chairman Mohan Baidhya Kiran,general secretary Ram Bahadur Thapa Badal,secretary C P Gajurel and party chief whip Deb Gurung opposed the deal,saying that “it was against national interest”.

Ministers Pun,Top Bahadur Rayamajhi and another member Prabhakar Sharma came to Bhattarai’s rescue on the deal,saying that “rabid anti-Indianism is not going take the country further”.

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