About Us About Development Partnership

The programme of India-Nepal economic cooperation was launched in 1951.  The objective of this programme was and remains to supplement the efforts of the Government of Nepal in the national development of the country. India’s assistance programme in Nepal is guided by the vision that alongside progress in political process in Nepal, it is equally important to ensure that economic deliverables, particularly in the areas of education, health and infrastructure, must reach the people without any pre-conditions in a smooth, quick and unencumbered manner. Towards this end, Government of India is providing technical and financial assistance for multi-sectoral development of Nepal. The scope and breath of India’s economic assistance programme has been expanding over the years.  A snapshot of the number of projects in recent years is as follows: 

No. of projects as on Small Large & intermediate Total
31.3.2004 16 10 26
31.3.2005 56 22 78
31.3.2006 100 24 124
31.3.2007 174 26 200
31.3.2008 247 28 275
31.3.2009 294 30 324
31.3.2010 340 30  370
31.3.2011 366 35 401
31.3.2012 396 35 431
31.3.2013 425 35 460
31.3.2014 450 35 485
31.10.2014 462 35 497
30.11.2014 466 36 502
31.05.2015 474 36 510

Small Development Projects Scheme:  The Small Development Projects are implemented on the basis of a MoU signed between GoI and GoN in November 2003 and renewed in June 2006, August 2008 and  August 2011. The validity of the current MoU is until 5 August 2014 and further extended wef 13.08.2014 until 05 Aug 2017. Projects costing less than NRs. 5 crores ($ 0.7 Million) approximately i.e. IRs. 3.125 crores) are undertaken with focus on areas of Infrastructure Development and Capacity Building in the areas of Education, Health Community Development.  The projects are implemented through local bodies of GON viz. District Development Committee (DDC), Municipality, Divisional office of Department of Urban Development and Building Construction (DUDBC). Embassy of India does not release funds directly to the beneficiary organizations. Funds are released to the local body of GON in the Districts concerned  in four installments based on progress reports received from the local body.     An overseeing committee consisting of executing agency (DDC etc.), concerned district office (education, health etc.), local community leaders, and beneficiary organisations is constituted to ensure quality and timely implementation of the projects. Implementation of the projects is closely monitored by EC Wing of the Embassy through periodical on-site inspections by the officials.

Sector-wise contribution made by the Government of India in Nepal is as follows: 


School/College/Library buildings: Education creates building blocks for the process of nation-building and is the first step towards the development of any country. Government of India focuses on the creation on infrastructure to provide good buildings, equipped with furniture, labs, computers etc. for providing proper education. It is also ensured that proper toilets and drinking water facilities is provided for students and staff. Government of India is providing assistance to institutions of all levels, starting from primary schools to universities in Nepal.  The total number of educational school projects undertaken by the Government of India in Nepal as SDPs covering nearly all Districts in the country comes to 273 at a cost of approximately IRs. 336 crores. 

Manmohan Memorial Polytechnic: This is the first polytechnic of its kind in Nepal providing technical education in three engineering streams and several vocational courses to make the people of that area self reliant.  The project was inaugurated by the Prime Minister of Nepal on 2nd November 2009. The fully residential institute has a capacity of providing education to almost 500 students at a time. Regular Diploma courses in Electrical, Electronics and Mechanical Engineering  commenced from November 6, 2008. GOI is extending a faculty support to the Polytechnic for a period of 5 years.  A 6-member Indian faculty team was positioned at MMP for the 05 academic years.   Estimated cost of project is IRs. 32 crore.


Health is one of the core areas of cooperation between India and Nepal. Beginning with the supply of medicines and equipment, the cooperation has gone on to build and develop health infrastructure ranging from major hospitals to numerous health posts in even the farthest corners of the country. 

Bir Hospital: Five storied OPD complex of the Bir Hospital at Kathmandu was constructed with the GOI assistance in year 1984-85. It has the capacity to accommodate 2500 out-patients and is equipped with sophisticated facilities. A modern Nuclear Imaging Medicine Centre as well as other equipment for use in the OPD were also provided by Government of India, making this hospital the premier Health Care Institution in Nepal.   Services of two Indian experts were also provided for a period of four years for training of medical specialist in Bir Hospital's Nephrology Department. 

National Trauma Centre at Kathmandu: The Centre was constructed with the assistance of GOI is a super specialty hospital and first of its kind in Nepal. It has been built on the lines of the Trauma Centre of the All India Institute of Medical Sciences in New Delhi for the  treatment of trauma patients. The Government of India, on the request of Government of Nepal decided to build this Centre fully equipped with modern medical equipments to save valuable lives. The MoU for establishment of the Centre was signed between GOI and GON on 30.07.2003.  Cost of the Project is about IRs. 100 Crores. The National Trauma Centre was jointly inaugurated by the Rt. Hon. H.E. Shri Sushil Koirala, Prime Minister of Nepal and H.E. Shri Narendra Modi, the Hon’ble Prime Minister of India on 25 November 2014.

B.P. Koirala Institute of Health Sciences (BPKIHS) at Dharan is the biggest hospital-cum-medical College outside  Kathmandu Valley which was constructed with GOI assistance of Rs. 120 crores. This hospital is providing medical care to patients of not only the Eastern region but also to patients coming from all over Nepal. Government of India is also providing medical faculty support to the medical college by deputing expert faculty from reputed institutes of India who are teaching the students and also helping the hospital in treatment of patients and capacity development in the field of medicine and surgery. The institute is providing MBBS and Post Graduate Degrees in medical sciences thereby helping make Nepal self-reliant in the health sector.   The Institute building was formally handed over to GON in September 1999.  On 11 March 2014, Ambassador  inaugurated the College Block  constructed at  the premises of the hospital with the GOI assistance of Rs 6.86 Crores.  Since, 2013-14, India is also providing an annual funding of Rs. 1 crore to BPKIHS for five years towards partially covering hiring of Indian faculty for the introduction of super specialty courses by BPKIHS  and or any other programme specifically for promoting ties/exchanges with India. Government of India shall provide financial assistance of IRs.2.50 crores to BPKIHS for procurement of furniture and equipment for the College Block at BKIHS, Dharan.

Hospitals and Maternity Centers under the SDP Programme :Several health posts, nursing campuses maternity centres, eye hospitals, naturopathy hospitals have been undertaken under our Small Development Project scheme. Infrastructure of 25 hospitals has been taken up  in the country  with Government of India’s assistance of Rs. 38 crores in 18 Districts.

Gifting of Ambulances/Buses: In order to facilitate the movement of patients from rural, remote and far flung areas to medical centres in Nepal, GoI has gifted 462 ambulances since 1994  across 73 districts in Nepal.  These vehicles provide a vital link for transporting patients to medical centres and hospitals.  90 school buses have also been gifted to various health and educational institutions to facilitate the movement of teachers, students, doctors and nurses.  

Goitre Control Programme: Iodine Deficiency Disorders (IDD) is a major micro-nutrient deficiency in Nepal. Starting from 1973, GoI has provided assistance of Rs.43 crores for the programme of control of Goitre and other iodine deficiencies in Nepal.   Govt. of India has also agreed to provide Rs. 4.3 crores for Iodine Deficiency Disorders Nepal, the MoU for which has been signed. The programme has been very successful in controlling IDD in the country, which has been one of the health related success stories of GON.  

Assistance to Nepal Netra Jyoti Sangh (NNJS) for Cataract and Trachoma surgeries programme: Blindness due to cataract is a major health problem in Nepal. It is estimated that there are about 3.20 lakh blind people in Nepal, including about 1.29 lakh  suffering from blindness due to cataract. About 20,000 people develop cataract in one or both eyes each year. Trachoma is the second leading causes of preventable blindness in Nepal. Out of Nepal’s 75 Districts, 29 Districts are affected by Trachoma. With the assistance of Government of India, Nepal Netra Jyoti Sangh (NNJS) organizes  approx. 400 Diagnostic Screening & Treatment (DST) camps and surgery camp for Cataract in 52 districts and for TT in 14 Districts in the country every year. These camps provide absolutely free medical service to the patients.   More than 1,02,000 patients have been cured for cataract and  about 5,100 patients have been cured of Trachoma under this programme. Government of India is providing assistance of Rs. 2.10 crores to NNJS during 2014-15 for eye care programme. 

School Eye Health Care Programme: Since 2007 Government of India has been providing assistance to NNJS for holding eye camps in schools in remote areas and providing free of cost 9,000 optical dispensing devices to ‘Vision Impaired” children and 300 Low vision dispensing device to children in Nepal every year. India has provided a financial assistance of Rs. 2.32 crores to NNJS for its School Eye Health Care Programme.  A mobile eye care van costing Rs. 13.52 lakh has also been provided  to NNJS for holding eye camps in schools.   A Memorandum of Understanding was signed on 17 September 2014 between the Embassy of India, Kathmandu and Nepal Netra Jyoti Sangh (NNJS) for providing Indian Grant Assistance of Rs.64 lakhs to NNJS for School Eye Health Care Programme in various Districts of Nepal.

TelecommunicationsGovernment of India provided an assistance of IRs.74 crores  to Nepal for the laying of 904 Kilometres Optical Fibre cable along the East-West Highway and setting up of 80 stations of SDH equipment. The fibre optic cable has formed the backbone of telecommunication network in Nepal and has transformed the lifestyle of Nepali citizens and made connectivity faster and reliable.

Roads and Bridges

Government of India has constructed 807 kilometres out of the total road length of 1024 Kilometres of the East–West Highway from Mahendranagar to Mechi (Mahendra Raj Marg) which istoday alife line of Nepal.  Twenty two bridges were constructed by Government of India on Kohalpur-Mahakali section of the East West Highway. These were handed over to the Government of Nepal in 2001.  Besides this, in recent times, 8 village and urban roads and 1 bridge have been constructed with GOI assistance of IRs. 12.83 crores under Small Development Projects Programme to provide easy access to the people of remote villages.  Presently work is ongoing for construction of 8 roads and 3 bridges at a cost of Rs. 20.43 crores. GoI is also funding the upgradation of road from Dakshanikali (Kathmandu) to Kulekhani (Makwanpur) at a cost approximately Rs. 9.37crores and an additional fund of Rs.3.11 crores has been sanctioned for additional work relating to drainage, land sliding, slop stabilization etc.

Terai Roads Projects: During the visit of the External Affairs Minister of India to Nepal in January 2010, both the Governments signed a Memorandum of Understanding for the development and construction of roads in the Terai area of Nepal. Phase-I of the project covers development of 19 link/postal roads in  Terai districts.  These 19 roads with a total length of 605 km being constructed under phase-I with Indian assistance of approximately Rs.700 crores will not only provide easy access to about 88 lakh people but will also help in promotion of trade and industry which will eventually contribute to overall economic  development of Nepal.  Phase-I will be followed by Phase-II and will cover about 845 kilometres of roads. Physical work has already commenced on all the Packages of Phase I of the roads. 

Electrification Projects

GOI is trying to bring smile on the face of those villagers who do not have access to electricity and spend their nights either in darkness or have to burn kerosene lamps for lighting.  GOI is providing assistance of Rs.13.77 crores for the electrification of 28 Villages through Nepal Electricity Authority. The project is ongoing. Upgradation of ThameKhola Small Hydropower Plant in Solukhumbu District has also been undertaken by GoI with a grant assistance of Rs. 2.76 crores. 

Drinking Water Projects

Government of India has launched a scheme of Drinking Water Projects for remote villages where people have to walk long distances to fetch drinking water. GOI has provided assistance of Rs. 13.75 crore for drinking water projects in various districts of Nepal. A project to provide drinking water facility at the base camp of Mt. Everest in district Solokhumbu is being undertaken by Government of India at a  cost of Rs. 2.46 crores. An MoU was also signed on 06 December 2014 for providing GoI assistance amounting to Rs.64 lakh for Drinking Water supply project in Mustang Distt. This will mitigate drinking water problems of Purangaon and Ranipawa villages of Mustange Distt. This is also expected to contribute to promotion of tourism as also serve the needs of the local populace. 

Strengthening of Cross-border linkages

Government of India has committed to provide assistance to Government of Nepal for  the establishment of Integrated Check-Posts (ICPs) at four major points along the India-Nepal border. These are: Raxaul(India)-Birgunj(Nepal), Saunali (India)–Bhairahawa(Nepal), Jogbani(India)-Biratnagar(Nepal) and Nepalgunj Road(India)-Nepalgunj(Nepal). Both the Governments have decided with mutual consent to start work on the Raxaul-Birgunj  and Jogbani-Biratnagar ICPs in the first phase with Indian assistance of Rs. 270 crores for the segment falling in Nepal. The ICPs will have state-of-the-art infrastructure, facilitating integrated customs and immigration for smooth cross-border movement of people and goods.  Home Minister of India laid the foundation stone of ICP at Raxaul on April 24, 2010 while the Minister of State for Home Affairs laid the foundation stone of ICP at Jogbani on 24 June 2010. Minister for External Affairs, Govt. of India laid the foundation stone of ICP Birgunj on 22 April 2011.  

Cross-Border Railway Links

Government of India has accepted the request of Government of Nepal for establishment of cross-border railway links at five locations on the Indo-Nepal border. These are (i) Jaynagar in India to Bardibas in Nepal, (ii) Jogbani in India to Biratnagar in Nepal, (iii) Nautanwa in India to Bhairahawa in Nepal, (iv) Rupaidiha in India to Nepalgunj in Nepal, and (v) New Jalpaiguri in India to Kakarbhitta in Nepal. Work on the railway connectivity at Jaynagar-Bardibas involving conversion of 51 km railway line from Jaynagar to Bijalpura into broad-gauge and its 17 km extension upto Bardibas and on the 17.65 km Jogbani – Biratnagar rail link is on going in the first phase of the project. Estimated cost of the two rail links proposed to be taken up in the first phase is more than Rs 802 crores.  

Flood Control and River Training

India has been providing assistance to Nepal for strengthening and extension of embankments along Lalbakeya, Bagmati and Kamla rivers for flood protection in Nepal and India. India is also providing grant assistance for river training works along Gagan, Trijuga, Lakhandei, Sunsari, Kaligandaki, Kankai and Banganga rivers in Nepal. 

India remains committed to continue working closely with Nepal for further development of cooperation in the field of Water Resources so that these contribute to development and prosperity of the two close and friendly neighbouring countries.


GOI has also contributed substantially towards the renovation and preservation of the unique cultural heritage of Nepal.  Some of the important projects undertaken by GoI in past years include the work of restoration of 18 historical sites in District Lalitpur and  restoration of Nepal Bhasha Parishad  House in Naradevi, Kathmandu. A Library building for Nepal Academy in Kathmandu District is also under process. The Construction of the Library building will not only further enhance the friendly relation between Nepal and India but will also further help to develop a strong monument of relation in the field of literature. Work has also been initiated for the restoration of two historical ponds i.e. Ganga Sagar and Dhanushsagar at Janakpur as also the restoration and renovation of the Rang Bhumi Maidan in Janakpur.  This renovation would provide improved facilities for the thousands of devotees who visit the religious and historical city of Janakpur. Over Rs. 16 crores has been committed by Government of India in this field.  

Construction of a Dharamshala for Pashupati Area Development Trust:- The project envisages the construction of a Dharamshala for Pashupati Area Development Trust an at estimated amount of Rs.18.25 crores. MoU for the project was signed on in March 2004 and extended upto December 2017. Consultant for the project has been appointed and process for awarding the contract for the construction is going on. 

 Training of GON officials in India

Government of India has sponsored study-cum-training Programmes for officials of the GON since 2007. These programmes are aimed at capacity-building and improvement of skills of the senior officials of Government of Nepal. 

Cooperation in Security

National Police Academy(NPA) :- A Memorandum of Understanding was signed by Government of India and Government of Nepal for construction of National Police Academy at Panauti in Kavrepalanchowk Distt. on 25 November 2014.  The foundation stone for construction of NPA was also laid jointly by the Rt. Hon. H.E. Shri Sushil Koirala, Prime Minister of Nepal H.E. Shri Narendra Modi, the Hon’ble Prime Minister of India on 25 November 2014.The project is being implemented with GoI assistance of Rs.5,49.46 crores.  The project will be completed in a phase wise manner over a period of four years.  Its goal is to develop quality human resources for Nepal Police to achieve organizational and individual objectives with a strong commitment of service and responsibility to the people and to maintain law and order in the country.