1. INDIA-NEPAL ECONOMIC
COOPERATION
PROGRAMME

2. FOCUS ON GRASSROOTS
In the late 1990s, Indian economic
cooperation in Nepal was further
diversified to focus on grassroots
projects.

3. SMALL DEVELOPMENT PROJECT
(SDP) PROGRAMME
• MOU signed between GOI and GON in
November 2003 and renewed in June 2006,
August 2008 and August 2011
• Projects costing less than NRs. 5 crores ($ 0.7
Million) approximately ie.IRs. 3.125 crores).
• Focus areas:-Infrastructure Development and
Capacity Building in the areas of
-Education
-Health
-Community Development

4. SMALL DEVELOPMENT PROJECT
(SDP) PROGRAMME
• FEATURES:
-Based on local needs,
-Through participation of community
and local bodies of GON
-Development directly reaching
the beneficiaries, no overheads
-Direct involvement of stakeholders
-Low investment, no overheads
-Short gestation period
-Simple and transparent modality
-Flexible

5. RANGE OF PROJECTS UNDER SDP
• Schools, multiple campuses, nursing campuses; Other
specialised training institutes; Libraries; Gifting of books,
gifting of school buses
• Primary health posts, maternity centres, hospitals, gifting
of ambulances/medical vans/medical equipment
• Rural electrification, micro hydroprojects
• Rural/Urban roads, bridges
• Canals (for example, Rajkulo in Lalitpur)
• Rural drinking water projects, cold storages
• River Training Projects
• Reforestation/ afforestation
• Developmental training for GON’s senior bureaucrats.

6. SMALL DEVELOPMENT PROJECT
(SDP) PROGRAMME
SOME STATISTICS:
• No. of SDPs (as of 31 December 2011): 389
• Total value: NRs.673.09 Crores ie $94.34
Million (appx) (IRs.421 cr)
• Completed: 183 Ongoing: 206
• No. of school projects(ongoing/completed):
200
• No. of districts covered so far: 70
• No. of beneficiaries: over 11 million

7. Nepal-Bharat Maitri Auditorium, Gorkha

8. Shree Janata Secondary School,
Garahiya Dumaria, Sarlahi

9. Shree Mahakaruna Sakyapa Vidyalaya, Lomanthang, Mustang

10. SOME OTHER POPULAR GRASSROOTS
PROGRAMMES
• GIFTING OF AMBULANCES AND BUSES
Since 1994, 342 ambulances and 66 buses presented
across 68 districts in Nepal (As of 26 January 2012)
• EYE CAMPS
Since 2001, assistance to Nepal Netra Jyoti Sangh for
cataract and trachoma surgeries through country-wide eye-
camps. So far, almost 4.25 lakh patients have been
examined and more than 87,000 surgeries performed in
these camps, with total Indian assistance of NRs. 21.10
crores ie $2.84 Million (appx). Number to exceed 100000 in
2012.
• Since 2007, a new School Eye Health Care Programme has
also been launched. More than 27000 students have been
provided with optical devices.

11. FINDINGS OF IMPACT STUDY OF
SDPs IN DISTRICT SARLAHI
• Significant improvement in the pass percentage of
students indicating high correlation with the
improvement in the infrastructure of schools.
• Significant improvement in the enrollment of
students from disadvantaged groups including
Dalit, Janajati and girl students.
• Number of girl students registered impressive
growth in most of these schools; an important
factor being availability of separate toilets for girl
students.

12. OVERALL ONGOING PROJECTS
(Including Large and Small Projects)
DURING 2003- (December 31) 2011
• 424 projects
• Total outlay: over NRs.6345 Crores
ie $ 858 Million (appx).
• Education, Health, Community
Development, Infrastructure

14. LARGE HEALTH PROJECTS
• 5 Storeyed OPD cum Ward Block of Bir Hospital
• 200 Bed Emergency and Trauma Centre,
Kathmandu – NRs 149 Crores ie $20.1 Million
(appx)
• BP Koirala Institute of Health Sciences, Dharan –
NRs 200 Crores ie $26.7 Million (appx)
• Establishment of Bakhtawari Hari Eye Hospital in
Krishnanagar, Kapilvastu – NRs 40 Crores ie $ 5.4
Million (appx)

16. Large Road Projects
• Government of India has constructed 807 Kilometers
out of the total road length of 1024 Kilometers of the
East – West Highway from Mahendranagar to Mechi
(Mahendra Raj Marg) which is today a life line of
Nepal.
• Twentytwo bridges on Kohalpur-Mahakali section of
the East West Highway. These were handed over to
the Government of Nepal in 2001.
• Eight village and urban roads and three bridges have
been constructed with GOI assistance of NRs 48.79
crores( $ 6.59 Million appx) under SDP Programme
to provide easy access to the people of remote
villages.
• Work is ongoing for construction of 10 roads and 2
bridges at a cost of NRs 29.09 Crores ($ 3.93 Million)
under SDP.

18. OTHER ROAD PROJECTS
• India constructed roads linking Kathmandu
to Dakshinkali, Trishuli, Balaju and Godavari
in the Kathmandu valley.
• Tribhuvan Rajmarg: Links Kathmandu with
Birgunj. Construction started in 1953 and
was completed in 1956. Handed over to GON
in 1965.
• Siddhartha Rajmarg: Links Sunauli with
Pokhara.
• Construction of Bagmati (Kathmandu)
Mohana (Kailali) and Sirsiya (Parsa) Bridges.
• Construction of Dakshinkali-Kulekhani Road

19. Flood Control and River Training
• India has been providing assistance to Nepal for
strengthening and extension of embankments for
river training and flood protection works along
Bagmati, Lalbakeya, ,Kamla, Gagan Trijuga,
Lakhandehi, Sunsari, Kankai and Kaligandaki rivers
in Nepal. Since 2007 an amount of nearly NRs 3
Billion ie $ 38.9 Million appx has been provided to
GON.
• A project for river training works on Banganga River
in Kapilvastu District has been initiated at a cost of
NRs 40 Million.
• The embankments have helped to channel the rivers
and prevent loss of life and property of the people of
Nepal.

20. Creation of Irrigation Facilities
• Development of 1350 Shallow Tube Wells in
Dhanusha,Mahottari and Siraha districts-NRs
11.46 Crores ie $1.55 Million appx.
• Development of 2700 Shallow Tube Wells in 9
districts of Nepal – NRs 25.67 Crores ie $3.47
Million appx.
• 22 Deep Tube Wells in Sunsari, Jhapa, Saptari
and Siraha – NRs 8.84 Crores ie $1.2 Million
appx.

21. Hydropower
• India-Nepal cooperation on the hydroelectricity
projects on Koshi, Trishuli, Gandaki and Mahakali
rivers account for the major portion of Nepal’s
country's electricity output.
• A 20 MW powerhouse was constructed as a part of
Trishuli Hydropower Project in the 1970s.
• Devighat Hydropower Project (3x5 MW) has been
rehabilitated by BHEL in 2011 and was handed over
to the GoN on 13th July, 2011.
• Surajpur Power Project, Kataiya Power Project and
Pushrekhola Project have received assistance as
well.
• Mahakali Treaty involves the integrated development
of the river Mahakali, the Sarada Barrage, Tanakpur
Barrage and Pancheshwar Project Cooperation and
is also focusing on projects on the BudhiGandaki
River.

22. Co-operating to provide electricity to
Nepal
• Presently Nepal is drawing 109 MW from
India using various electric lines.
• GOI actively supports Nepal to meet the
shortfall of power that it faces.
• Presently Nepal is drawing 109 MW from
India using various cross border electric
lines.
• Plans are afoot to augment the supply to
Nepal by about 74 MW in the short term ie
within 2012 and upto 200 MW by 2013

23. LARGE EDUCATIONAL PROJECTS
Manmohan Memorial Polytechnic at
Biratnagar- NRs 46 Crores ie $ 6.2
Million(appx)

24. •CTEVT affiliated. Three disciplines: Electrical, Electronics, and Mechanical and
several short term – 90 day- courses
•More than 400 students Indian Faculty support for 5 years.
Work in progress. First batch to pass out in 2011

25. Proposed polytechnic at Hetauda,
Makwanpur- NRs 50 Crores ie $6.7
Million (appx). Will offer diploma courses
in Electronics and communication,
Electrical, mechanical and Computer
Engineering
Short term certificate courses

26. LARGE S&T PROJECTS
• Establishment of proposed Science
Learning Centre in Kathmandu- NRs 16
Crores ie $ 2.2 Million (appx)
• Laying of 904 Kilometres Optical Fibre
cable along the East-West Highway and
setting up of 80 stations of SDH
equipment- NRs 118 Crores ie $ 16.2
Million (appx)

27. CROSS-BORDER CONNECTIVITY

28. TERAI ROADS PROJECT
• MOU for
implementation of
Phase I signed in
January 2010
• Upgradation of
over 1450 km of
feeder roads and
postal roads in
Terai (part of
Strategic Road
Network identified
by GON).Two
Phases
• Phase-I to includes
19 roads totaling
605 km with cost of
NRs. 1100 crores ie
Phase-I Roads $ 166 Million (appx)

29. MAHENDRANAGAR-TANAKPUR
LINK ROAD
• The 14.5 km link road connecting Mahendranagar
in Nepal’s far-west with Tanakpur in India will
extend the connectivity beyond the East-West
Highway into India.- NRs. 67 crore ie $ 9 Million
(appx)
• DPR for the project had been completed. However
GON has requested that this link road, which
would be part of the Asian Highway Network
(AHN), be designed as per the AHN specifications.
Necessary modifications in the DPR are presently
being carried out.

30. INTEGRATED CHECK-POSTS
• State-of-the-art Integrated check-
posts (ICP) at Birgunj, Biratnagar,
Bhairahawa and Nepalgunj.
• To provide integrated channel for
cross-border movement of people
and goods.
• DPR for all four checkposts has
been completed.
• Raxaul-Birgunj andf Jogbani-
Biratnagar ICP’s are being
undertaken under Phase-I. Work on
ICP Birgunj has started and is
expected to start soon in
Biratnagar. Estimated cost is about
Nrs. 416 crores ie $ 56.2 Million
(appx)
• Work on ICP at Nepalgunj has been
selected to be taken up next.
• A high-level bilateral Project
Steering Committee is monitoring
the project to fast-track it.

31. CROSS-BORDER RAILWAY
LINKS
• Cross-border railway links at five
border points – Biratnagar, Janakpur
(Bardibas), Nepalganj, Bhairahawa
and Kakarbhitta.
• DPR has been completed.
• Projected cost at present: over NRs
2123 crores ie $ 287 Million (appx)
• Will significantly facilitate cross-
border movement and will be a major
boost for promoting trade and
commerce.
• following two points along the India-
Nepal border at an estimated cost of
NRs Rs.1090 crores ie $ 147
Million(appx) are prioritised
• (i) Jogbani-Biratnagar ( 18 Kms)
(ii) Gauge conversion of Jayanagar to
Bijalpura (51 kms) and extension of
the same to Bardibas (17 kms).

32. India’s Assistance for the
Peace Process in Nepal
• India’s economic cooperation engagement with Nepal
has grown manifold in the past few years, particularly
since the restoration of multiparty democracy in the
country.
• India welcomed the roadmap laid down by the historic
Comprehensive Peace Agreement towards political
stabilization in Nepal leading to the formation of the
Constituent Assembly.
• India remains steadfast in its commitment to extend
assistance for Nepal’s economic rehabilitation and
political stabilization. The existing developmental
engagement stands to be further strengthened with the
ushering in of a new era of hope and peace in Nepal.

33. India’s General Assistance
• Direct budgetary assistance of IRs. 100 crore to
GON in fiscal 2006-07;
• Soft credit line of US$100 million for infrastructure
development projects as prioritized by GON (In
2007).
• Another line of credit of US$250 extended in
October 2011 during visit of PM of Nepal to India.
• Waiver of outstanding dues on defence purchases
(more than IRs. 100 crore);
• Doubling the number of GOI scholarships for
Nepalese students to 2000;
• Supply of 25,000 metric tons of fertilizers at
subsidized prices;

34. Indian Technical And Economic Co-
operation Programme- ITEC
• India provides 100 ITEC scholarship
annually to Nepalese citizens. It has been
agreed to double the ITEC slots to 200
during PM Dr. Bhattarai’s visit.
• From 2000 till date, more than 600
participants have benefited from attending
short- term professional courses in India.
• Apart from the training in professional
courses, the participants are provided NR
40,000 per month, lodging & Boarding
facilities and return airfare.

35. •More than 50 institutions conduct around 200 short-
term, medium-term and long-term courses every
year.
•The training programme is demand-driven and
subjects selected are of interest to developing
countries for their working professionals on a wide
and diverse range of skills and disciplines.
Institutions like Indian Institute of Mass
communication, IIT’s, Indian Institute of Science,
TERI, Geological Survey of india and other
institutions of international repute.

36. India’s Assistance for the
Peace Process in Nepal
• Supply of over 1200 vehicles and 14,000 wireless
sets to the Nepal Police;
• Supply of over 80 vehicles and 50 wireless sets to
UN;
• Supply of 70 containers for storage of arms being
managed under UN supervision;
• Supply of 6800 metric tons of food material and 4000
tents for rehabilitation of internally displaced
persons;
• Supporting the electoral process with close
interaction between the Election Commissions of
both countries through supply of equipment such as
Electronic Voting Machines (200), ballot printing
machines, computers, vehicles (75), training,
sharing of experiences of Indian elections, etc.;

37. India’s Assistance Philosophy
India believes that alongside progress in
political process in Nepal, it is equally
critical to ensure that economic
deliverables, particularly in the areas of
education, health and infrastructure, reach
people without any pre-conditions in a
smooth, quick and unencumbered manner.

38. India’s Development Focus in Nepal
• Focus on connectivity projects
• Large infrastructure projects to continue
to be taken up aligned with Nepal’s
development priorities
• At the same time, small, grassroots level,
community-based projects to be further
strengthened and expanded

39. Miscellaneous Facts
• There are 125,000 Indian Ex service
Persons in Nepal.
• GOI disburses pension worth NRs 2000
Crores ($ 270 Million appx) every year
besides other welfare activities like
Medical camps, Medicine Pack
Scheme, Rural electrification and
drinking water projects.

40. Thank You