Thursday, June 8 2006 09:41 Hrs (IST) - World Time -

New Delhi: Committing itself to help in economic reconstruction and political stabilisation of Nepal, India has decided to provide a grant of Rs 100 crore to the neighbouring country to meet its immediate needs and expressed willingness to resume military aid if sought.

After talks between Prime Minister Manmohan Singh and his Nepalese counterpart G P Koirala here, New Delhi backed the peace efforts underway in the Himalayan country and asked Maoists to abandon violence to enter political mainstream.

During the hour-long talks, Singh noted that Nepal is at a historical juncture and conveyed India's full support, within its means, to Nepal's economic recovery and reconstruction, External Affairs Ministry spokesman Navtej Sarna told reporters.

Koirala, on his first visit abroad since becoming Prime Minister more than a month ago after restoration of democracy, told Singh that his country was facing a 'serious economic' situation.

Singh responded with the assurance that its "needs will be given utmost attention and immediate consideration", Sarna said.

"The Indian side said it would help Nepal both in immediate terms and long-term. Details of assistance are expected to be finalised during Koirala's visit," he said.

Sources told sources that India would give an immediate grant of Rs 100 crore to Nepal as budgetary support to it, a unique move signifying the importance New Delhi accords to it.

Besides the amount, New Delhi will commit thousands of crores of rupees for long-term reconstruction and development of Nepal, they said. The reconstruction package will involve funding of various infrastructural and developmental projects in sectors like roads and power.