No 4% additional customs duty on Nepal exports to India

In a significant move, India today offered to exempt all exports of Nepal into the country from the 4 per cent additional customs duty. It has also decided to waive the dues owed by the Nepalese government on its defence purchases.

These measures are part of a composite economic package of over Rs 1,000 crore approved by Prime Minister Manmohan Singh for Nepal during the visit of its premier Girija Prasad Koirala to the capital.

New Delhi has also offered a soft credit line of $ 100 million for the execution of infrastructure development projects and decided to enhance its 'Aid to Nepal' budget for the current financial year from Rs 65 crore to Rs 150 crore.

In addition, India will extend an immediate one-time grant of Rs 100 crore to the budget of the Government of Nepal.

It was also decided that India would supply 25,000 metric tonnes of fertilizers at subsidised prices. The Indian Oil Corporation will also work out with the Nepal Oil Corporation, modalities for rescheduling the dues owed to it on account of oil supplies.

India also offered to expedite progress on long-term mega infrastructure projects in the areas of roads, railway linkages, border infrastructure, water resources, construction of an oil pipeline, Special Economic Zone and airports upgradation.

It will also double the number of scholarships provided by the Government of India for Nepalese students and accelerate the release of all funds to Nepal under the Duty Refund Procedure Scheme.