Jairam Ramesh in Patna. Picture by Deepak Kumar

Patna, April 27: India would start working on fresh trade models with the newly elected Maoist leaders of Nepal, free from the “baggage of history”, Jairam Ramesh said today.

At a seminar — Emerging Trends in India-Nepal Relations — that concluded here, the Union minister of state for commerce and industries told delegates from the neighbouring country that four check posts of “international standards” would be set up to ensure “smooth and well-regulated” movement of people and goods.

Two of the posts would be on the Bihar stretch of the Indo-Nepal border; the other two near the border with Uttar Pradesh.

Setting up the check posts would cost Rs 316 crore, which the Union cabinet had already allocated, Jairam said. “India will spend Rs 119 crore of the Rs 316 crore to set up the check posts on the Nepal side, recognising its duty to help its neighbour in building trade and commerce infrastructure,” he added.

The delegates from Nepal voiced concern about the yawning trade deficit between the neighbours, with the balance heavily tilted in India’s favour. While India exports goods worth $950 million to Nepal, its imports are around $300 million.

The delegates also complained about “non-traffic barriers”, under which goods from Nepal first have to be brought to India to be tested and certified before Kathmandu can export them. Traders in Nepal see this as a hindrance because transport costs double as the goods first have to come to India for testing and then again for trade.

On this count, Jairam assured the delegates that Nepal would have a testing and certification laboratory recognised by India so traders could save time and money.

“Most South Asian nations, including Bangladesh, Sri Lanka, Maldives, Myanmar and Nepal, have been suffering from the huge trade deficit at India’s hands because of a gap in economic prosperity,” Jairam said. But India would help Nepal and its other neighbours in “bridging the gap” by assisting them to get more investments from India, he added.

“Two Indian companies, GMR and Sutlej Jal Vidyut Nigam, have already won the bid to set up power projects worth 300MW in upper Karnali and 400MW in Arun III, both in southern Nepal,” Jairam said. Also, the Power Trading Corporation of India has signed an agreement with two companies that are setting up power projects in Nepal to buy 700MW of power, he said. “The Indian investment will develop Nepal’s capacity to export power and earn more.”