New Delhi: After an initial setback, as India gains a diplomatic foothold in Nepal even as the Himalayan nation shows some signs of returning to normalcy, New Delhi is pressing ahead with a strong bilateral initiative, which may also involve a huge financial package to help the insurgency-hit nation recover from the economic reverses.
A hint to this effect was dropped by the Indian ambassador to Nepal, Shiv Shanker Mukherjee, on Wednesday. He said India is not just worried about Nepal's political stability, but also economic recovery.
Speaking exclusively to CNN-IBN, Mukherjee said that India would give all possible assistance to help tide over Nepal's economic hardship.
Sources told CNN-IBN that a financial aid package could also include direct budgetary assistance to Nepal's new government, a practice rarely followed by India.
Sources also confirm that India is willing to reconsider resuming military aid to the royal Nepal army and mediate in the disarming process of Maoists if requested.
Immediately after the royal coup in 2002 when India resorted to aid cut to the kingdom in an effort to put pressure on the palace over its anti-democracy moves, Kathmandu had cut off military links with New Delhi and turned to Pakistan for supplies.
Suggesting India was planning economic packages and financial aid for the country, Union Defence Minister Pranab Mukherjee said, "We are conscious of the challenges lying ahead for Nepal as it embarks on the journey towards restoring political stability, achieving economic recovery and finding a peaceful solution to the armed conflict."
"These challenges will require the positive contribution of all concerned drawing upon the support of the people of Nepal," he added.
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