Kathmandu, August 3
Prime Minister Narendra Modi today met his Nepalese counterpart Sushil Koirala during which the two sides signed three agreements, including a Rs 69 million grant to Nepal to supply iodated salt to curb iodine deficiency diseases.

Modi also announced Rs 10,000 crore ($ 1 billion) as concessional line of credit to Nepal and proposed a 'HIT formula' for the development of the land-locked country endowed with rich hydropower potential.

Modi, while addressing Nepal Constituent Assembly, said for Nepal, "India has decided to provide Nepal with Rs 10,000 crore ($ 1 billion) as concessional line of credit for various development purposes."

"This amount is separate from the previous assistance that India has already provided to Nepal," Modi, the first Indian Prime Minister to visit the country in 17 years, said.

Modi and Koirala witnessed the signing of three agreements.

Under the first agreement, India will provide a grant assistance worth Rs 69 million to supply iodated salt to curb goitre and other diseases related with iodine deficiency.

The second agreement was regarding the amendment of Articles 17 and 18 of the Pancheswor Multiple Project, the Himalayan Times reported.

The third agreement is about cooperation between Nepal Television and Doordarshan, the state-owned television stations of both the countries, it said.

Earlier, India had provided $ 250 million line of credit to Nepal through the Exim Bank of India.

The new grant will be utilised for infrastructure development and energy projects as per Nepal's priority, according to Nepalese Foreign Ministry.

Proposing a model development formula for Nepal, Modi said, "I want to HIT Nepal", drawing wide applause from the lawmakers. Elaborating his strategy, Modi said HIT in his lexicon implies - H:Highways, I:I-ways and T:Transways.

He said these three combined together would pave the way for rapid development of the country and India wants to "give this gift at the earliest".

He said India would help Nepal in constructing highways for better connectivity. It would provide assistance to the country for developing information highways so that "Nepal should not be left behind among the nations of the world. Nepal too has to catch up with the digital age and it has to be connected to the world at large".

He said Nepal had abundant potential for developing its hydropower sector and for this purpose India was committed to establish transmission lines for the export and import of electricity.

"I want to double the amount of electricity India is providing Nepal today so we have to lay the transmission lines as soon as possible," the Prime Minister said, adding India wanted to buy electricity from Nepal. Modi, who arrived here this morning on his maiden official visit to Nepal, met Koirala at Singha Durbar Secretariat.

From Singhadurbar, Modi went to the Constituent Assembly building in New Baneshwar to meet Speaker Subas Chandra Nembang.

On his way to the Constituent Assembly, Modi stopped his convoy to meet common people. PTI

• Proposing a model development formula for Nepal, Modi said, "I want to HIT Nepal", drawing wide applause from the lawmakers.
• Elaborating his strategy, Modi said HIT in his lexicon implies - H:Highways, I:I-ways and T:Transways.
• He said these three combined together would pave the way for rapid development of the country