India Wednesday offered its "full support" for economic recovery and reconstruction of Nepal and backed the dialogue between the Nepali government and Nepali guerrillas aimed at integrating the guerrillas into the political mainstream.
India is still finalizing the economic package, estimated to be over 20 million U.S. dollars, according to Indian official sources.
In his one-on-one talks with the visiting Nepali Prime Minister Girija Prasad Koirala, Indian Prime Minister Manmohan Singh conveyed New Delhi's commitment to help Nepal recover economically both in "short term as well as long-term".
The details of the package will be worked out during discussions between Indian Finance Minister P. Chidambaram and his Nepalese counterpart Ram Sharan Mahat Thursday and will be announced before Koirala leaves on Friday evening.
"Nepal's needs will be given the utmost importance and immediate consideration of the Indian government," Manmohan Singh told Koirala, who arrived here Tuesday evening on a four-day official visit.
Manmohan Singh also pledged India's help "both in the immediate term as well as in the long-term requirements" over the coming years for a vast swathe of infrastructure projects, including the building of roads, bridges and railway.
"He (Manmohan Singh) conveyed India's full support, within our means, for Nepal's economic recovery and reconstruction efforts," Indo-Asian News Service quoted Indian external affairs ministry spokesperson Navtej Sarna as saying.
India also backed the "peace efforts" of the Nepali government to bring the guerrillas into the political fold.