New Delhi, Feb. 23: After Pakistan, India has decided — finally — to extend its “bus diplomacy” to Nepal.

Though the details are yet to be worked out, the agreement on Motor Vehicles for Passenger Traffic signed today in Kathmandu paves the way for a Delhi-Kathmandu bus service after years of ignoring the smaller neighbour.

Indian ambassador Shyam Saran and Nepal transport secretary Narayan Silwal inked the deal.

Not only Delhi-Kathmandu, buses may ultimately link major cities in India’s north and east with both Kathmandu and other important centres in Nepal.

The agreement followed consultations this afternoon between foreign secretary Shashank and his Nepalese counterpart Madhav Ram Acharya on the entire gamut of bilateral relations.

At least 106 buses — 53 from each side — could be pressed into service, sources said.

The five possible border terminals in the neighbouring country are Kakarbeta, Mahendranagar, Bhairwa, Birgunj and Biratnagar, they said.

Kathmandu and Pokhra, too, might be included.

Calcutta, Darjeeling, Delhi, Lucknow, Varanasi and Patna are on the likely bus route.

India already has the Delhi-Lahore bus service with Pakistan, and the Calcutta-Dhaka and Agartala-Dhaka bus service with Bangladesh.

But though a large number of people travel between India and Nepal every year, so far no serious attempt had been made by either side to connect the countries by bus.

When the proposal was mooted a few months ago, the local transporters in Nepal tried to resist the move for fear that they would be swamped by their “bigger” counterparts from India.

There was also some apprehension that most of their permits for the bus routes with Indian cities would be taken up by transporters in Kathmandu.

But the resistance died down after the Nepalese authorities managed to convey their views more clearly and assured local transporters there was no fear of being engulfed by the Indians.

Sources said though the transport agreement signed today paved the way for the bus service in the coming months, the protocol governing the deal needed to be worked out in greater detail.

Many of the state governments in India, too would have to be involved as it concerns them.

The bus services, once they begin, will help a large number of students, businessmen, pilgrims and employees in either country to move to and fro and even come to India for medical treatment.

It would also be a big boost to tourism in Nepal as a large number of people frequently travel to Kathmandu and other places in Nepal.

At present, only private vehicles are allowed to cross the border without fee for a period of five days.

For most others, travel between the two countries is both expensive and time-consuming.

So the agreement is likely to go a long way in restoring confidence and trust between the two sides after the serious beating it had taken some years ago in the wake of the hijack of an Indian Airlines plane from Kathmandu.

Besides holding discussions with Acharya, the foreign secretary also called on Nepal Prime Minister Surya Bahadur Thapa and “ambassador at large” and de facto foreign minister Bhek Bahadur Thapa.

The two sides spoke about ways to increase trade and commerce and also about some of the developments in the region, particularly the peace process between India and Pakistan and the restart of the composite dialogue.