Pushpa Kamal Dahal, alias Prachanda, made the trilateral proposal during his official visit to India in April 2013. This was the third time since 2010 that Prachanda had raised this issue. This concept seems to be a modified version of his earlier ‘equidistance policy’, which was declared after he became prime minister in September 2008. He proposed trilateral cooperation for the first time in October 2010 after visiting Beijing.

Pushpa Kamal Dahal, alias Prachanda, the chairman of the United Communist Party of Nepal (UCPN) (Maoist), visited India on April 27–30, 2013, shortly after he had returned from a week-long visit to China. During his visits to China and India, Prachanda proposed trilateral cooperation between India, Nepal and China. Although he assured India that this trilateral cooperation would be founded on the bilateral relations that Nepal already shares with India, he clearly did not elaborate on the nature of this trilateral cooperation and the issues that need to be discussed within this framework.

Nepal's King Prithvi Narayan Shah's famous ‘Yam between two boulders’ quote reflects the great understanding of Nepal's security dilemma, even as far back as the 18th century. 1 This has remained a cornerstone of Nepal's foreign policy to date, primarily driven by Nepal's geographic location. 2 Shah understood well that Nepal would always remain insecure vis-à-vis its powerful neighbours, that is, China and India, and urged the need to keep refining, adapting and adjusting Nepal's foreign policy in order to deal with its powerful regional neighbours.