Nepal is seeking a large-scale assistance package from India ahead of Prime Minister Balendra Shah's planned visit to New Delhi, likely on 22 or 23 November 2026, a senior official at Nepal's Ministry of Foreign Affairs confirmed. The visit, yet to be officially announced by either side, is expected to be the first bilateral trip by Shah since he was sworn in as Nepal's Prime Minister on 27 March 2026 following the 5 March parliamentary elections.

Flood Crisis Adds Urgency to Aid Talks

Nepal's appeal for Indian support has taken on fresh urgency following the devastating floods of 26 August, triggered by the swelling of the Bhote Koshi and Trishuli rivers. The disaster killed nearly 1,500 people, with more than 5,000 still unaccounted for, according to Nepal's National Disaster Risk Reduction and Management Authority. Entire communities, hydropower plants, roads, and bridges were swept away, causing billions of dollars in physical damage.

'Although the resources needed for reconstruction are enormous, we had been seeking a large-scale assistance package from India even before the floods struck the country,' the Foreign Ministry official said, without specifying the amount. The official added that Nepal wanted assistance 'with fewer conditions attached to ensure smooth implementation and visible results within a short period.'

Nepal's Finance Minister Swarnim Wagle has already travelled to India to discuss possible assistance for post-flood reconstruction, signalling that preliminary groundwork is under way ahead of the prime ministerial visit.

Lines of Credit and Historical Context

India has been a significant source of development financing for Nepal. Beyond regular grants through budgetary allocations, Nepal is currently utilising four lines of credit (LOCs) from India totalling US $1.65 billion — comprising tranches of US $100 million, US $250 million, US $550 million, and US $750 million — dedicated to infrastructure projects prioritised by the Nepali government, according to the Indian Embassy's website. Following the catastrophic 2015 earthquake, India pledged US $1 billion for post-earthquake reconstruction. Credit extended through the Export-Import Bank of India carries a sourcing requirement, mandating that a certain percentage of components originate in India — a condition Nepal is reportedly seeking to ease.

Border Disputes and Air Routes on the Table

Beyond financial assistance, Nepal's Foreign Ministry official said Kathmandu would seek progress on longstanding border disputes — particularly over the territories of Lipulekh, Kalapani, and Limpiyadhura, which Nepal claims as its own but which India considers part of Uttarakhand. This dispute has been a persistent source of bilateral friction.

Nepal is also pressing for additional air-entry routes through Indian airspace. Currently, approximately 90 per cent of international flights into Nepal enter through a single congested point over Simara in southern Nepal. For nearly a decade, Nepal has sought new entry corridors — through Janakpur, Bhairahawa, and Nepalgunj — to support its newer international airports in Pokhara and Bhairahawa. India has reportedly been reluctant to grant direct low-altitude routes, citing security concerns around sensitive military installations, including the Gorakhpur air base, and complexities in air traffic management.

Trade, Energy, and Infrastructure Projects

The agenda is expected to extend to trade and energy cooperation. Nepal is seeking an early review of the Nepal-India Trade Treaty, which was automatically renewed in 2023. A key Nepali concern is the removal of non-tariff barriers stemming from the requirement that Nepali exporters obtain certification from India's Bureau of Indian Standards (BIS) — a procedural hurdle that has hit exporters of cement, steel, plywood, footwear, sanitary pads, diapers, and electrical wires.

On energy, Nepal is reportedly considering placing major hydropower projects on the summit agenda, including the 750-MW West Seti, the 480-MW Phukot Karnali, and the 450-MW Seti River-6 projects, all involving India's state-owned NHPC. Development of the Phukot Karnali project has faced uncertainty following a Supreme Court ruling requiring NHPC to provide Nepal with at least 21.9 per cent free energy, according to officials at Nepal's Ministry of Energy, Water Resources and Irrigation.

During the visit, the two sides are also expected to inaugurate several India-assisted development projects, including the Nepal Police Academy in Panauti, Kavrepalanchok district, a bridge in Darchula, the integrated check post in Bhairahawa, and a motorable bridge over the Mahakali River. Construction is also expected to be launched on the integrated check post in Dodhara Chandani, the Lower Arun hydropower project, and a petroleum pipeline from Siliguri in India to Jhapa in Nepal, according to reports citing The Kathmandu Post. Other issues on the table reportedly include the Koshi River project, the Ayodhya-Janakpur railway, and Indian support for Nepal's ambitions in artificial intelligence.

Shah's only foreign trip since taking office was to New York in September to attend the 81st session of the United Nations General Assembly. If confirmed, the New Delhi visit would mark his first bilateral engagement with India — and a defining early test of his government's foreign policy direction.