India, Nepal sign ten pacts

• When we trust each other, we can move forward very quickly: Modi
• Projects that have been in limbo for 25 years are moving forward
• India, Nepal allow nationals to carry 500 and 1,000 notes
• Modi calls for timely drafting of Nepal constitution

Kathmandu: Prime Minister Narendra Modi on Tuesday held talks with his Nepalese counterpart Sushil Koirala on key strategic issues after which ten agreements, including a pact on USD 1 billion assistance to Nepal, were inked.

A host of strategic issues, including defence and security, were discussed between Modi and Koirala during their talks that lasted for nearly 40 minutes. Talking about bilateral ties, Modi said, "When we trust each other, we can move forward very quickly."

"Projects that have been in limbo for 25 years are moving forward. I feel very satisfied," he said after inaugurating the trauma centre built by India at Kathmandu's Bir Hospital. Following the talks between the two leaders, the two sides finalised terms of the USD 1 billion Indian assistance for Nepal's infrastructure development, which was announced by Modi during his August visit.

The agreement for the USD 1 billion Line of Credit to Nepal was signed between Nepal's Finance Ministry Joint Secretary Madhu Kumar Marasini and David Rasquinha, the Deputy Managing Director of Exim Bank. India and Nepal on Tuesday signed the Motor Vehicle Agreement under which permit would be given to vehicles to ply on designated routes in each other's country.

They also inked three twin-city pacts between Kathmandu-Varanasi, Janakpur-Ayodhya and Lumbini-Bodh Gaya. The 10 agreements signed between the two countries include, MoU on training at Nepal Police Academy, MoU on Tourism, MoU Traditional Medicines and MoU on Youth Exchange.

India and Nepal also lifted a decade-long ban on carrying of Rs 500 and Rs 1,000 Indian bank notes by their nationals while visiting each other's countries by setting a maximum limit of Rs 25,000 for the high denomination currency, benefiting tourists.

India also gifted Nepal mobile soil testing lab that will boost soil health monitoring and adoption of best agricultural practices.

Earlier, Modi made a strong pitch for the early drafting of Nepal's Constitution, saying if the country fails to do so it may get into "difficulties". "I request all political stakeholders to draft the Constitution by early next year as committed through consensus which will reflect aspirations of all communities, including Madhesis, Pahadis and Maoists...Failing to do so can cause difficulties to Nepal and your difficulty despite our expertise to help you in this field is a matter of sadness," Modi said. He said India will not like to interfere but having expertise and not being able to help Nepal from getting into difficulty will be sad Modi's comments calling for speedy drafting of Nepal's Constitution came after he inaugurated the trauma centre built by India at Kathmandu's Bir Hospital. The 200-bedded centre is a Rs 1.5 billion project of the Indian government.