India is readying an economic package amounting to several hundred crores for pulling Nepal out of the economic quagmire it finds itself in and to help the new government consolidate itself. Government sources told this daily that the package is being worked out keeping in mind the severe deprivation the people of Nepal have been facing over the last month due to disruption of supplies and goods to Nepal.
The package is to comprise the following elements:
a) Immediate bailout from the liquidity crisis.
b) Ensuring all border points where foodstuff and other goods are stranded on the Indian end are rapidly moved to all parts of Nepal.
c) Transporting of petro-products in short supply.
d) Addressing the liquidity crisis Nepal is facing. Many think tanks have warned that Nepal faces a huge liquidity crisis and that the government may not have enough money to pay its employees their salary.
Donor agencies have pulled out because of the precarious condition in Nepal adding further to its woes.
A cash grant by the Government of India to the Government of Nepal is likely.
The Indian government is also likely to delve into its food reserves if required to ensure Nepal does not suffer from any food shortages.
An investment package in the mid term and the long term is also being readied.
Meanwhile, New Delhi promised “unstinted” support to the Nepalis.
“We are ready to render unstinted support to the people of Nepal in whatever manner they wish,” Defence Minister Pranab Mukherjee told reporters after a meeting of the Cabinet Committee on Political Affairs (CCPA).
New Delhi has no objection to the Maoists joining the political mainstream provided they renounce violence and accept multiparty democracy for good.
