What could possibly be their interest? May be Hydro-power! Economy of every country depends on its energy. Energy is defined by the work done capacity. Work = Money. India doesn't have sufficient renewable energy resources. It dosen't have enough nuclear fuel as well, neither it does have sufficient petrolium (80+% imports). 60+% of its electricity is from coal. She is very rich in coal. However, coal is not renewable, one day it will be finished. Before that, India will have to sign Kyoto Protocol, which is anti-green house effect treaty. By the time India signs Kyoto Protocol, if there is no breakthrough of technology (proespective solar energy has just 10% efficiency), it will run out of energy. This won't take long time. They are desperately looking for permanent source of energy for future. India doesn't have sufficient water for other purposes as well. What if Nepal use up big amount of water to irrigate her field during the season of cultivation? India will be in trouble. Next thing is Hydrogen economy. Because of green house effect, tomorrow it will be illigal to burn gas cells. Our atmosphere will be filled with CO and CO2 gases. Tomorrow's fuel will be Hydrogen. It is extracted from water by electrolysis process. If you have electricity, you can get hydrogen fuel. Nepal has 83,000+ Mega Watt electricity, which can be future Iraq for Hydrogen fuel. Right now it seems India doesn't need anything from Nepal, but Nepal is its only hope for future. Chaina is prospective super power in two decade. It has a lot of nuclear fuel, however, as we know from USA, no superpower satisfies by energy. Its an energy which makes country superpower. China, India both have nonrenewable energy sources. One day they will run out of those non renewable energy resources. They know it very well because they are smart, cleaver. They are farsighted and are already looking for the measure. His Majestrie's Chaina card is quite old technique, Chaina is a player, can't be a card. Country like USA doesn't go to Iraq without oil. If it was democracy that took US to Iraq, why neighbouring Saudi Arabia, which is perfect autocracy, getting protection from US? Don't believe on words, they are just for dummies. If US can do such things for energy why can't India n Chaina? US wants to protect Chaina to be a superpower. India can balance China to some extent. US doen't want Chinese influence in Nepal. Regional power balance theory. You may not buy this but I think this could be true. To exist beween two smart big countries we have to be smarter, otherwise we may lose our existance. The end