India and Nepal have agreed to revise much opposed Indo-Nepal Trade and Transit Treaty. Revision of the 58-year-old treaty which is fundamental governor of the bilateral relations would be done to develop Indo-Nepal bilateral relationship in new era under latest realities. Maoists, since their inception in Nepal have been opposing the treaty and for them time has come for it to go.

 

India's Foreign Secretary, SS Menon said that Nepal has been keen to update the 1950 (Trade and Transit) Treaty and India too is ready for the same. He opined that the review of the treaty has been necessitated as "nature of the relations" has changed after the installation of Maoist government in Nepal. However, Nepalese Foreign Minister Upendra Yadav has said that two prime ministers have agreed to scrap the treaty itself.

 

On the other hand, scrapping of the treaty has not been confirmed by Indian side. Also, there is news that Nepalese officials came with their drafting of the treaty but the same could not be taken out as revision of the treaty is underway. According to common understanding between Nepal and India, there would be a foreign secretary level talk to revise the treaty. Mr Yadav said that the new treaty draft could be furnished to India after the scheduled secretary level meeting.