India has agreed to provide an economic package amounting to 15 billion Nepali rupees to support ongoing peace process of Nepal.

Decision to this effect was made during the India visit of Prime Minister Girija Prasad Koirala.

As part of the economic package, India would immediately extend a one-time grant of Nepali Rs 1.6 billion to support the forthcoming budget of the Government of Nepal; offer a soft credit line of N Rs 7.5 billion (US $ 100 million) for the execution of infrastructure development projects as prioritized by the Government of Nepal, according to the 12-point joint statement.

India would also “enhance its aid to Nepal budget” for the current financial year from Rs 1.4 billion to Rs 2.4 billion; waive the dues outstanding by the Government of Nepal to the Government of India on account of defense purchases; and arrange for immediate supply of 25,000 metric tons of fertilizers at subsidized prices. In what came as a huge relief to Nepali businessmen and exporters, India has also decided to exempt all export of goods manufactured in Nepal into India from the 4 percent Additional Duty of Customs.

India has also expressed its readiness to expedite progress on a range of long-term projects. They will include “long-term mega infrastructure projects in the areas of roads, railway linkages, border infrastructure, water resources and construction of an oil pipeline from Birgunj, Special Economic Zone, airports upgradation, and other areas to be mutually agreed upon by both governments”.

India would also accelerate the release of all funds to Nepal under the Duty Refund Procedure Scheme; double the number of scholarships for Nepalese students, including for girls; and reschedule the payment of dues owed by the Nepal Oil Corporation to Indian Oil Corporation on account of oil supplies.

India has also agreed to support Nepal for inviting United Nations to supervise the management of weapons of the Maoists, Koirala added.

“India suggested to invite UN only for management of arms and rehabilitation,” said Koirala.

Prime Minister Koirala held discussions with Indian President, Prime Minister, government officials, leaders of various political parties and during his four-day visit to India.