Nepal has proposed purchase of two advanced light helicopters (ALHs), generically named HAL Dhruv, from India at a highly subsidised price.
The Nepali proposal, forwarded at the 11th Bilateral Consultative Group meeting here, envisages a 40 percent down payment by Nepal and an Indian waiver on the remaining 60 percent, a top diplomatic source told IANS following the conclusion of the two-day talks Monday.
The Indian side was reportedly positive on Nepal's request but detailed negotiations for procuring the ALHs will be carried out later, said the official.
Earlier, India had provided two ALHs to the Nepal Army during the second Constituent Assembly elections in November last year for monitoring of election security. These were later returned by Nepal.
According to the official, the Nepal Army purchases only military stores, weapons and logistics from India but "we hoped the Indian side will be agreeable to providing the helicopters at a modest price".
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Besides, India also agreed to provide medical-related equipment to various Nepal Army hospitals. The Himalayan nation has sought equipment to upgrade the combined hospital-strength by 250 beds.
The Indian side also agreed to provide some lethal weapons to the Nepal Army under the existing framework as well as to conduct joint military exercises in the future.
Both sides will conduct various types of military-related courses, visits, tours, joint medical training and work further in disaster response and preparedness.
The two also agreed to an Indian proposal for real-time military intelligence-sharing. According to the proposal, the first of its kind, the two sides will prepare a mechanism to curb the emanating security challenge along the Nepal-India open border.
According to a statement by the Nepal foreign ministry, both sides during the meeting discussed overall cooperation between Nepal and India in the area of defence and security.
Though the Indian side expressed its readiness to extend support to Nepal's request to resume military supplies, equipment and stores, both sides have maintained silence over the modalities of such cooperation. The immediate request from the Nepalese side to purchase military equipment and stores was not revealed by either side.
The meeting mainly focused on military training, defence hardware, and information sharing, said the foreign ministry statement.
The meeting also reviewed the progress made regarding the decisions taken in the 10th Bilateral Consultative Group meeting. It was decided to hold the 12th meeting in India in 2015.
The Nepal Army received 45 truck-loads of ammunition, bomb disposal items and explosive devices provided by India in the second week of June.
Under the non-lethal consignment, the Nepal Army had received several hundred vehicles including 35 armoured, 216 light and 154 heavy vehicles. Among the heavy vehicles were 58 trucks with 7.5 tonne-capacity.
(Anil Giri can be contacted at girianil@gmail.com)