India and Nepal have resolved issues relating to defence cooperation and have agreed to discuss the resumption of military supplies by New Delhi to Kathmandu in greater detail at a joint committee meeting later this year.
Defence Minister Pranab Mukherjee, told reporters after his meeting with visiting Nepal Prime Minister Girija Prasad Koirala, that "All issues relating to defence cooperation have been sorted out."
India suspended its military assistance to Nepal last year after a royal power grab by King Gyanendra. Subsequently, it resumed non-lethal military supplies in small measure.
IANS reports that India will also provide $21.7 million for Nepal's immediate needs, and is likely to pledge at least twice that amount for the Himalayan state's long-term development, including building roads, bridges and railroads.