About Us About Development Partnership

Nepal is one of India’s largest and most prominent development partners. India-Nepal Cooperation for developing modern infrastructure in Nepal began in 1951 with construction of Gauchar Airport in Kathmandu (completed in 1954). The Indian Aid Mission in Nepal was set up in 1954 for coordinating various projects and efforts of Indian government for development in Nepal in the areas of connectivity, health, education, power, government departments etc. Apart from taking up infrastructure development projects, India has also shared technical know-how with Nepal in various fields including  education, health, archives, archeology, irrigation, power, horticulture, development of industries, trade promotion etc contributing in its social-economic development. The India-Nepal development partnership has continued and expanded for over seven decades. The projects under Development partnership have been diverse in size and sector with geographical spread throughout Nepal.

I.                   Grant Projects


(a)               Large and Intermediate Infrastructure Projects

Major initial projects (in 1950s) included Gauchar Airport (presently Tribhuvan Airport), Tribhuwan Rajmarg, East-West Highway (Mahendra Raj Marg), development of Tribhuvan university and some of its affiliates, Kathmandu water supply project, National Archives building, airports at Janakpur, Bhairawa and Biratnagar, construction of  Forestry institute in Hetauda, and various irrigation development, drinking water and hydro power projects. Untilearly seventies, Roads, Airports Irrigation, Power and Water supply projects were the major portfolios of our grant projects. Thereafter the projects further expanded to other priority sectors of Nepal like Health, Education Power, and Irrigation and have brought general prosperity and technological and economic Development.

The development partnership took major leap in last 15 years, when several connectivity projects have been undertaken. The Most important landmark is inauguration of train operations on Jaynagar-Kurtha Section  of Jaynagar - Bardibas rail link by Shri Narendra Modi,  Prime Minister of India and Shri Sher Bahadur Deuba, Prime Minister of Nepal on 2nd April 2022 which is the first ever cross-boarder broad-guage rail project in Nepal. This section is part of  Jayanagar-Bijalpura- Bardibas Rail link (INR 548 cr). (Bijalpura to Bardibas under construction). Jogbani- Biratnagar Rail link (under construction, INR 395.54 cr ), Raxaul-Kathmandu Rail link (survey underway), Hulaki / Terai Road (almost completed, INR 500 cr), East – West fiber optics (INR 74.00 cr), Integrated Check-Posts at Birgunj (INR 135.19 cr),  (Nepal’s first ever Integrated Check-Post) and Biratnagar (INR 139.73 cr), Nepalgunj (under construction, INR 147.12 cr) and Bhairawa (under process) are some other major projects in this Sector.

In Energy Sector, the cooperation that begun with Trishuli Hydropower Projects, Pokhara Hydropower projects, Kataiya Power house and Devigh at Hydro-eclectic project has further developed with commissioning of Motihari-Amlekhgunj Petroleum Pipeline (INR 324 cr) in 2019, first cross-border petroleum product pipeline in the South Asia region, which has resulted in direct economic benefits to Nepali people (decrease of NRs. 2/ liter in price) as well as spared the roads from congestions.

In the Health Sector, Nepal Bharat Maitri Emergency & Trauma Centre (INR 100 cr) at Kathmandu (first trauma centre with AIIMS like specialized facilities) , B.P Koilara Institute of Health Science, Dharan (125.cr), Construction of 5 storyed OPD complex of Bir Hospital (INR 100 cr) , Kathmandu, are some major projects. 

In the Education Sector, Nepal Bharat Maitri Vidalaya, Pokhara (INR 125 cr), construction of Manmohan Memorial polytechnic (INR 32 cr), Tri-Chand College development, Projects in Tribhuvan University (establishment of library, Gandhi Bhawan, girls & boys hostel) are some of the major projects. Construction of Pashupati Dharamshala (INR 22 cr) at Kathmandu, development of Patan Industrial Area, Laltipur, installation of over 3000 shallow tube wells Terrai region (INR 18.10 cr), Construction of Museum Building at Lumbini (INR 5.9 cr) are some other recent important projects. The recent projects include construction of Nepal Bharat Maitri Polytechnic, Hetauda (ongoing, INR 39.30 cr)

            A major project underway is the Construction of Nepal’s National Police Academy (NPA) (at tendered cost  of INR 625.94 cr)  for which  ground breaking ceremony for construction was jointly performed by Shri Naveen Srivastava, Ambassador of India to Nepal and Mr. Bal Krishna Khand, Home Minister, Government of Nepal,

(b)               High Impact Community Development Projects (HICDPs)

            Apart from the above projects, HICDPs earlier known as Small Development Projects (SDPs) are another important portfolio of development partnership. HICDPs are short-gestation projects with a maximum financial out lay of NRs.5.0 Cr (INRs.3.0 Cr). These grass root projects have been implemented in the priority sectors of Government of Nepal such as hospitals, schools, colleges, drinking water facilities, sanitation &drainage system, rural electrification& hydro power plant, embankment and river training works etc. for creating adequate capacity building and construction of new infrastructure and enhancing the quality of life and all round development of people of Nepal.

            Since 2003, over 535 HICDPs have been taken up by Government of India including 476 HICDPs completed and 59 ongoing projects. The total cost of all projects is around INR.722 Cr (NPR 1155 Cr.). The projects are implemented through local authorities of Nepal Government.

(c)                Gifting of Ambulances and School Buses

            The Government of India is gifting Ambulances and school Buses every year to various institutions working in health and education sectors in Nepal. Ambulances are helping common citizens in getting timely medical support. The school buses are providing students with safe and economical mode of transportation to commute to school, especially in far-flung areas. This initiative is connecting with grass-root people even in the furthest places across. So far, Government of India has distributed 940 ambulances and 184 school buses in different parts of Nepal. These services placed to be part of the first line and contributing significantly in the health care and education sector.


(d)               Post-earthquake Reconstruction

Following the earthquake of April 2015, the Government of India committed US$ 1 billion, comprising US$ 250 million as a grant and US$ 750 million as a Line of Credit, for post-earthquake reconstruction projects in Nepal.  


          US$ 150 million (US$ 100 million as a grant and US$ 50 million from the 4th Line of Credit) was allocated to the Housing sector to support 50,000 housing beneficiaries in Gorkha and Nuwakot. The construction of 50,000 houses has been completed, and the closing ceremony was held in Kathmandu on November 15, 2021. 


          US$ 50 million grant has been allocated for the reconstruction of 71 educational institutes in 8 districts of Nepal. So far, 14 schools have been handed over to the Government of Nepal, 30 schools are ready for handover, and 26 schools and one library building projects are under implementation. 


A Grant of US$ 50 million has been allocated for the reconstruction of 132 Health projects in 10 districts. Out of 132 health facilities being undertaken under Grant in health sector, 15 health facilities are ready for handover and remaining are ongoing 


            A Grant of US$ 50 million is allocated for the reconstruction of 28 cultural heritage projects in 7 districts which are under various stages of implementation.


(e)  Gifting of Flood Relief Assistance and Vehicle for Election


Consignment of flood and landslide relief material was handed over to 15th July, 2022.  For smooth conduction of election, 200 vehicles (120 vehicles for use of security agencies and 80 for use of election commission of Nepal) was also handed over in November, 2022 to Government of Nepal.  

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