Modi, Oli to boost ties, work closely

New Delhi: Prime Minister Narendra Modi on Monday congratulated K.P. Sharma Oli on his appointment as Nepal's Prime Minister and expressed hope for strengthened ties and expanded cooperation between the two countries.

In a post on X (formerly Twitter), Modi wrote, "Congratulations @kpsharmaoli on your appointment as the Prime Minister of Nepal. Look forward to working closely to further strengthen the deep bonds of friendship between our two countries and to further expand our mutually beneficial cooperation for the progress and prosperity of our peoples. @PM_nepal."

Responding to Prime Minister Modi's congratulatory message on his appointment as Nepal's prime minister for the fourth time, Oli thanked the Indian leader for his warm wishes.

“Thank you, Prime Minister @narendramodi for your warm congratulations. I am committed to working closely with you to strengthen Nepal-India relations for our mutual benefit. Together, we can elevate our historic ties to new heights,” the newly appointed prime minister said on X.

Oli, the leader of the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML), has been appointed Prime Minister amidst a coalition with the Nepali Congress, which has traditionally maintained strong ties with New Delhi.

Despite Oli's pro-China image, this coalition introduces a dynamic where New Delhi will closely monitor Kathmandu's policies while Beijing seeks to bolster its influence in the region.

During Oli's previous tenure as Prime Minister in 2020, India-Nepal relations were strained when Nepal unveiled a new map claiming parts of India's Uttarakhand state - Limpiyadhura, Kalapani, and Lipu Lekh - as its own. New Delhi objected to this move, causing diplomatic tensions. However, following Oli's loss of power, the two nations have since reached a "general understanding" to address the border dispute through dialogue and to avoid politicising such issues.

Despite these past tensions, India has continued to focus on development assistance and deepening power sector cooperation with Nepal. Significant infrastructure projects are underway, including the Arun III hydropower project, the Gorakhpur-Butwal 400 kV cross-border line, and various Integrated Check Posts (ICPs) and railway projects such as the Jayanagar-Bijalpura-Bardibas and Jogbani-Biratnagar rail links. These projects build on previous successes like the ICPs in Biratnagar and Birgunj, as well as the Motihari-Amlekhgunj petroleum pipeline, South Asia's first cross-border petroleum product pipeline.

Further strengthening financial connectivity, the launch of the RuPay card in Nepal two years ago marked another step towards closer economic ties between the two countries.