Koirala: Cash in hand

New Delhi, June 7: India today loosened its purse strings to help Nepal Prime Minister Girija Prasad Koirala pull his country out of an economic mess.

Koirala spent over an hour with Prime Minister Manmohan Singh and gave a detailed account of Nepal’s immediate and long-term requirements to get back on its feet after months of anti-monarchy protests and the current struggle to establish lasting democracy by bringing the Maoists into the political mainstream.

Delhi accepted most of Koirala’s requests and decided to release Rs 100 crore to take care of urgent needs. A more comprehensive package based on long-term projections will follow before the Nepal leader ends his four-day visit to the country on Friday.

Koirala, who heads an interim government, has been welcomed warmly with Singh describing him as one of the most prominent democratic leaders in South Asia.

Delhi also said it is willing to resume military aid to Kathmandu if asked. Aid was suspended after King Gyanendra dismissed the democratically-elected government last year and seized absolute power.

India assured Nepal that ongoing development projects would continue and that more could be added. Nepal has said it will need projects worth around Rs 7,500 crore in the next five years. Delhi supports 137 projects in fields such as health, energy, education and infrastructure.

Ministers accompanying Koirala appeared happy.

While India has said it supports the peace talks with Maoists and hopes they will join the constituent assembly elections, it appears reluctant to talk about the monarchy’s role, saying it is for the people of Nepal to decide.