Question 1

Which treaty governs the open border arrangement between India and Nepal?

Accepted Answer

Treaty of Peace and Friendship 1950. The Treaty of Peace and Friendship signed in 1950 forms the legal basis of the open border between India and Nepal. Under this treaty, citizens of both countries can travel, work, and settle in each other's territory without visas. This unique arrangement reflects the close historical and cultural ties between the two neighbours.

Question 2

The Mahakali Treaty of 1996 between India and Nepal was signed primarily for:

Accepted Answer

Hydropower and water sharing. The Mahakali Treaty of 1996 (also called the Treaty on Integrated Development of the Mahakali River) was signed to govern the development of the Mahakali River for hydropower and water sharing. It covered projects including Sarada Barrage, Tanakpur Barrage, and the proposed Pancheshwar Multipurpose Project. The treaty aimed to ensure equitable sharing of water resources between the two countries.

Question 3

The Kalapani-Lipulekh dispute between India and Nepal involves which type of territory?

Accepted Answer

Trijunction area claimed by both. The Kalapani-Lipulekh dispute involves a trijunction area at the confluence of India, Nepal, and China where both India and Nepal assert territorial claims. Nepal considers Kalapani, Lipulekh, and Limpiyadhura as part of its Sudurpashchim Province based on historical Mahakali River boundary claims. India administers the area and considers it part of Uttarakhand. Tensions escalated in 2020 when India opened a road link to Lipulekh Pass.

Question 4

The Arun III Hydropower Project in Nepal is being developed by which Indian company?

Accepted Answer

SJVN. The Arun III Hydropower Project (900 MW) in Nepal is being developed by SJVN Limited (Satluj Jal Vidyut Nigam), a Government of India enterprise. It is located on the Arun River in the Sankhuwasabha district of eastern Nepal. Once complete, it will be one of the largest hydropower projects built by India in Nepal, boosting bilateral energy cooperation.

Question 5

BIPPA signed between India and Nepal stands for:

Accepted Answer

Bilateral Investment Promotion and Protection Agreement. BIPPA stands for Bilateral Investment Promotion and Protection Agreement, signed between India and Nepal in 2011. The agreement is designed to create a favourable environment for investors from both countries by ensuring fair and equitable treatment of investments. It provides protection against expropriation and guarantees the right to repatriate profits.

India & Neighbours (Nepal, BD, SL) — Set 1