Nepalese Prime Minister Lokendra Bahadur Chand.

MUMBAI, May 16: Nepalese Prime Minister Lokendra Bahadur Chand today called for concerted efforts to enhance bilateral trade between India and Nepal even as the two neighbours are just about three weeks away from signing a ``power trade agreement.''

``South Asian Association for Regional Cooperation (SAARC) countries account for a meagre share in the world trade and it is high time India and Nepal increase bilateral trade,'' Chand said in his address at a luncheon meeting organised here by the Confederation of Indian Industry (CII).

Indian ambassador to Nepal K V Rajan said the power trade agreement, which will facilitate sale of electricity generated in Nepal to consumers in India, has already been approved by both the governments and is expected to be signed in three weeks time.

Nepal has already signed with India the Mahakali Treaty which envisages setting up of hydro-electricity projects in the Mahakali river basin to generate 6,600 MW of power. The modalities for taking up development of the Mahakali basin were being worked out, C L Agarwal, vice-president of Federation of Nepal Chamber of Commerce and Industry (FNCCI), said.

Rajan said the private sector could invest in Nepal's power sector and sell the electricity generated to any party in India and informed that about five Indian business houses including the Tatas and the Aditya Birla group had shown interest in Nepal's power sector.

Nepal's prime minister said his country has substantially liberalised investment regime and an institutional framework had already been put in place to facilitate investments.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.