India, Nepal to sign deal for 900 MW power project

India and Nepal are likely to sign an agreement for the construction of a 900 MW power project and another one for starting a direct bus service between Kathmandu and New Delhi during the visit of Prime Minister Narendra Modi for the upcoming SAARC summit here.

The agreement for the Arun Hydropower Project being developed by Satluj Vidyut Nigam will be signed after the two countries had finalised a Power Development Agreement (PDA) for constructing the 900 MW Upper Karnali power project being developed by GMR consortium, a couple of months ago.

Nepal will host the 18th SAARC summit in Kathmandu on November 26-27.

Two Nepalese cities have formed sister city relationships with two Indian cities and preparations are underway to sign a memorandum of understanding for the purpose.

An MoU will be signed between Nepal and India for making Kathmandu-Varanasi and Janakpur-Ayodhya sister cities during the visit of Prime Minister Modi.

A motor vehicle agreement for a direct bus service between Kathmandu and New Delhi is also likely to be signed.

Modi, who will arrive in Nepal by land on November 25, will also visit Muktinath a famous pilgrimage site in the northwest mountain region of Nepal before wrapping up his visit on November 28.