In a move that undoubtedly put officials in New Delhi slightly more nervous, China is likely to provide a massive $100 million financial aid to Kathmandu. The decision came soon after the visit of India’s External Affairs Minister Pranab Mukherjee to Nepal. China is seeking to improve its relations with the Maoists and the financial package will certainly assist in increasing the virtual distance between India and Nepal.

Towards cementing the relationship between the two countries, Chinese Foreign Minister Yang Jiechi on Tuesday (December 02) will sign an economic and technical cooperation pact with Maoist-led government. Nepal’s Prime Minister Prachanda's foreign affairs advisor Hira Bahadur Thapa told a news agency. The modalities of the $100 million financial aid are likely to be accommodated in the bilateral agreement.

Yang Jiechi, during talks with his Nepalese counterpart Upendra Yadav, is likely to discuss the entire range of bilateral relations. Jiechi will also meet Prime Minister Prachanda, President Ram Baran Yadav and other senior political leaders. This is the first high-level visit by Chinese officials after the formation of the Maoist-led government in August this year.

According to media reports, China is also providing financial assistance to Nepal in constructing a civil servants hospital and has plans to build an Ayurvedic hospital-cum-research centre in the Himalayan Kingdom.