Prime Minister Narendra Modi’s visit to Nepal later this week — which is expected to be lined with goodwill gestures from India as part of its trust-building exercise — is likely to expedite the proposed amendment of the 19--year old bilateral Treaty of Transit.

The amendment will make it easier for Nepal to trade with third countries.

“We are going to look at the changes that Nepal wants in the Transit Treaty and also what we want and document these. We are not looking to complete the process of amendment during the visit. It will be the start of a process,” a government official told BusinessLine .

Modi will also make some other popular announcements, taking forward commitments made during Nepalese Prime Minister KP Sharma Oli’s visit to India in April. These include expanding rail linkages by connecting Raxaul in India to Kathmandu in Nepal, striking a partnership in agriculture and establishing new connectivity between the two countries through inland waterways.

Modi will start his two-day tour (May 11 and May 12) from Janakpur (he is scheduled to be received by Oli at the Janakpur temple), where he is expected to make some announcements on the proposed ‘Ramayana tourism circuit’. He will later fly down to Kathmandu for his official reception.

Also on schedule is the inauguration of the 900 MW Arun 111 hydro power project, being constructed with Indian assistance in eastern Nepal.

“Now that we are confident that there is a stable government in Nepal we will work together to build a strong future and also built trust,” the official said.

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