NEW DELHI, Sept 15: Nepalese Prime Minister Pushp Kamal Dahal Prachanda shed a bit of his forbidding Maoist reputation here on Monday inviting Indian investors and extolling the virtues of private capital.

On his first visit to New Delhi since forming a coalition government, Mr Prachanda sought to allay concerns over Nepal’s perceived tilt towards China, a sensitive issue with New Delhi.

“Due to our specific cultural, historical and tradition of economic inter-dependence, relations with India are crucial and vital,” he told a meeting of Indian and Nepalese business captains.

“Although we also want to develop relations with China, they cannot be compared right now and there is no question of comparison.”

Mr Prachanda had earlier visited Beijing as his first foreign destination after he assumed office in August, which led to a spate of reports speculating about his government moving closer to China. New Delhi has generally been the first port of call for any new Nepalese head of government.“We will do all we can to ensure industrial security in Nepal...the government of Nepal remains committed to adopt every possible measure to provide investors the necessary security,” he assured businessmen.

He revealed that a high-level Investment Board would soon be constituted under his chairmanship to introduce necessary reforms in industrial policy and procedures aimed at simplifying the process of setting up a business in Nepal, creating an investment-friendly environment and for the fast track solution of any problems and difficulties.

About Nepal’s hydropower potential, Mr Prachanda said he was looking at big projects and was even open to considering subsidies in this sector.

He further stated “given the historic relationship between India and Nepal, the envisaged role of Indian industry in Nepal’s advancement was crucial and vital. In that context, ties with India and China cannot be compared. In fact, there is no question of comparison.”

Earlier reports from Nepal said a draft has been readied to replace the 1950 Treaty of Peace and Friendship between his country and India.

“We have already prepared a draft which I am carrying to India,” the Maoist leader said in an interview to the state-owned The Rising Nepal.

“When talking about putting forth a new draft for the treaty, I am against the idea that India should accept whatever we propose. Rather, it should be done in such a way that the points to be included in the treaty are worked out following the formation of a special task force of Nepalese and Indian officials in the respective countries to finalise the draft through mutual consultations and understanding.”

The 1954 Kosi Treaty would also be reviewed during Mr. Prachanda’s visit. But, he said, he would not sign any new treaty.

His primary focus would be “to remove the crisis of confidence between Nepal and India at a political level.”