In a major move, Nepal’s central bank, the Nepal Rastra Bank, is moving ahead with plans to print new banknotes within the next year. These notes will include disputed areas with India. This information came to light through a media report on Tuesday. Nepal’s move aims to show areas like Kalapani, Lipulekh, and Limpiyadhura as part of its country, which have long been a matter of dispute between India and Nepal.
According to Nepal Rastra Bank joint spokesperson Dliram Pokharel, the bank has started the process in this direction. This decision was taken by the cabinet led by then Prime Minister Pushpa Kamal Dahal ‘Prachanda’ on May 3. Pokharel said, “The bank has already started the process of printing new notes.” He said that this work will be completed within six months to one year.
Nepal has passed the controversial map
In May 2020, during the government of KP Sharma Oli, Nepal released a new political map, showing Lipulekh, Kalapani, and Limpiyadhura as its territory. This new map was also approved by the Parliament of Nepal and after this it was implemented in all official documents, replacing the old map. India lodged strong protest after this move, as these areas come under India’s jurisdiction.
India and Nepal share a border of more than 1,850 kilometers, which is adjacent to five Indian states like Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand. This new move by Nepal can further increase tensions on already sensitive issues between the two countries.
History and background to the controversy
India and Nepal have long disputed the Kalapani, Lipulekh, and Limpiyadhura regions. After the Treaty of Sugauli in 1815, the border between Nepal and British India was determined, but even after the treaty there was no clarity on the boundary of these areas. Nepal claims that these areas fall within its borders, while India considers them part of Pithoragarh district of Uttarakhand.
The dispute over Kalapani, Lipulekh and Limpiyadhura mainly came into the limelight after India inaugurated a new road to Mansarovar via Lipulekh in 2019. Following this move, Nepal protested and released a new political map showing these areas as part of its territory.
After Nepal released the map, India reacted sharply, calling it a “unilateral action” and warned Kathmandu that such “fabricated expansion” of territorial claims is not acceptable to it. India has been saying that Lipulekh, Kalapani and Limpiyadhura are its territories.
Impact on India-Nepal relations
This move by Nepal may adversely affect the relations between the two countries. Despite deep cultural and historical ties between India and Nepal, the border dispute has soured the relations between the two countries in the last few years. The inclusion of disputed areas in Nepal’s new banknotes may further increase these tensions.
In June, Nepal Prime Minister Pushpa Kamal Dahal ‘Prachanda’ said that his government is clear and firm that all areas east of the Mahakali river, including Limpiyadhura, Kalapani and Lipu Pass, are part of his country. Prachanda made this remark while responding to questions asked by MPs during the discussion on the Appropriation Bill, 2081 in the House of Representatives. He reminded that according to the Sugauli Treaty signed between the Government of Nepal and the East India Company in 1816, these areas belong to Nepal and a political map has also been published including these areas.