Nepal PM likely to sign power pact with China during Sept trip

economictimes.indiatimes.com:

Prachanda's China visit in September could result in a power trading agreement on the lines of the Himalayan nation's cross-border power trading agreement with India, signalling a balancing act by the former Maoist leader. Nepal wants to develop a cross-border transmission line with China via the border district of Rasuwa, which is expected to be signed during Prachanda's visit, according to Kathmandu-based sources. Nepal also wants to learn best practices in agriculture from China while simultaneously engaging with India in the same sector, according to one of sources quoted above.

Addressing a public function in Nepal's Chitwan on Saturday, Prachanda said there will be a new power trading agreement with China, according to a Kathmandu Post report. «We have had very positive talks with China and Bangladesh with regard to the power trading agreements. We will sign separate understandings with the two countries soon.

There is an agreement to export power to Bangladesh via India and we are planning to sign the agreement in Kathmandu at a special function,» Prachanda said, according to the Kathmandu Post report. Prachanda, who visited India in June, also said, «I am soon sending a team to India to discuss how we can cooperate in the agriculture sector. We have also agreed to set up a chemical fertiliser industry in Nepal with India's support.» In the recent past, Kathmandu had been rocked by incidents of alleged Chinese-backed crime syndicates involved in gold smuggling.

Last week, several Chinese nationals were arrested in Nepal over a gold smuggling scam, according to Kathmandu- based sources. The gold meant for India was sourced from Hong Kong, alleged one of the above-mentioned sources. Nepal's Department of Revenue