Nepali Prime Minister Girija Rasa Koirala returned home on Friday completing his four-day India visit.

Upon his returning, Koirala told reporters that India has agreed to release Nepali guerrillas currently in Indian jails and that India has no objection over the United Nations monitoring of arms during Constituent Assembly elections in Nepal.

"I am quite satisfied with the outcome," Koirala told reporters, adding that "I found them extremely concerned about the situation in Nepal. Everybody has extended their support for peace."

India has decided to extend direct budgetary assistance of 1 billion Indian rupees (14.2 million U.S. dollars) to Nepal, increase its annual budget outlays for Nepal to 1.5 billion Indian rupees (21.4 million dollars) from the present 650 million rupees (9.2 million dollars), according to Finance Minister Ram Sharan Mahat.

In addition, it has decided to extend a soft loan assistance of 100 million U.S. dollars, officials said.

India has also decided to write off debts worth 1.5 billion rupees from the Nepali Defense Ministry, which has been receiving military assistance from India since 1964.

Source: Xinhua