Nepal
Nepal and India enjoy excellent bilateral ties. Founded on the age-old connection of history, culture, tradition and religion, these relations are close, comprehensive and multidimensional and are pronounced more in political, social, cultural, religious and economic engagements with each other. To add up the formal flavour to such historic relations, the two countries established diplomatic relations on 17 June 1947. The unwavering commitment to the principles of peaceful coexistence, sovereign equality, and understanding of each other’s aspirations and sensitivities has been the firm foundation on which our bilateral relations have been growing further.
Nepal is one of India’s largest and most prominent development partners. Nepal’s solemn desire to cultivate and foster the cordial and friendly ties with its neighbouring countries are reflected in its long-standing position of not allowing its territory to be misused by any elements inimical to India and also expects same sort of reciprocity and assurances from her. The open border between the two countries remains a unique feature of our relations. Frontier without restriction has greatly facilitated the free movements of our people to each other’s territory and enhanced interactions.
Cooperation to tackle the challenge of COVID-19 Pandemic
- As part of our Covid-19 assistance, India had supplied more than 23 tonnes of medicines and medical equipment to Nepal on Grant basis during the first wave of COVID-19. India has recently resumed the supply of COVID-19 vaccine to Nepal. Till date, more than 9.5 million doses of these vaccines have been sent to Nepal, both on grant and commercial basis.
- In order to assist Nepal to cope with the second wave of the COVID-19 pandemic, a Medical Oxygen Plant based on India’s indigenous technology was installed at B.P. Koirala Institute of Health Sciences in Dharan in August 2021. This plant has a capacity to serve 200 patients simultaneously.
- The total Covid-19 assistance provided to Nepal is more than USD 7 Million. India’s efforts to ensure uninterrupted supply of Medical Oxygen to Nepal as well as in maintaining normal trade flows through border points even during the peak of the pandemic has been greatly appreciated in Nepal.
Capacity Building & Other Exchanges
- Under ITEC programme, professional training was offered to about 444 officials from Nepal at various technical institutes in India in the year 2023-2024. From 2001-2002 to 2023-2024, more than 2500 ITEC alumni of Nepal have received trainings under ITEC programme of GoI.
- GoI provides around 1500 scholarships annually to Nepali nationals studying in India and in Nepal at all levels of education in a wide range of disciplines .
- ICCR offers scholarships to Nepal under several schemes: Atal Bihari Vajpayee General, Sushma Swaraj Silver Jubilee, Lata Mangeshkar Dance & Music, and AYUSH. ICCR has established three Chairs at universities in Nepal.
- In the past two years, MoUs for academic collaboration have been signed between several institutions, including CSJM Kanpur and AFU Chitwan, IIT Roorkee and Tribhuvan University, IIT Madras and Kathmandu University, Madhesh University and Chanakya National Law University, and Nepal Sanskrit University and IIT Kanpur.
- On 26th January 2021, the Sampark India-Nepal Alumni Network was launched to connect Nepali alumni and current students in India. This initiative aims to create a vibrant network and share knowledge and expertise to aid Nepal's development. The Embassy organizes regular engagement events.
Development Cooperation (Grants/ LoCs/ Assistance)
- India-Nepal Cooperation for developing modern infrastructure in Nepal began in 1951 with construction of Gauchar Airport in Kathmandu (completed in 1954).
- The Government of India (GoI) provides significant financial and technical assistance to Nepal for large development, infrastructure, and connectivity projects, as well as small/high-impact community development projects in education, health, irrigation, rural infrastructure, and livelihood development. Numerous cross-border connectivity projects, including rail links, roads, and Integrated Check Posts, are being implemented with GoI's grant assistance.
- Despite COVID restrictions, work on connectivity and development projects continued and made significant progress. In March 2021, 13 Terai Road packages were completed with GOI assistance of INR 500 crores and were dedicated to the people of Nepal. High Impact Community Development Projects (HICDPs) inaugurated during the COVID period include Fateh Bal Eye Hospital in Nepalgunj, Rapti Cold Storage Building in Lamahi Bazar, and the Rehabilitated Small Hydro Power Plant in Jumla District.
- India and Nepal have also expanded bilateral cooperation to include new initiatives in the areas of agriculture, railways and inland waterways connectivity. The ‘New Partnership in Agriculture’ was announced in April 2018, which focuses on collaborative projects in Agriculture, Education and R&D.
- India is providing financial and technical assistance for construction of two broad-gauge cross-border rail links: Jaynagar-Bardibas (US$ 65.82 mn) and Jogbani-Biratnagar (US$ 47.6 mn). A Letter of Exchange (LoE) to the India-Nepal Rail Services Agreement (RSA) has been signed, allowing all authorized cargo train operators, including private ones, to transport Nepal's containers and other freight.
- In addition to that, GoI handed over 34.9 km long cross-border rail link connecting Jayanagar (in Bihar) to Kurtha (in Nepal) to Nepalese government and both countries also signed a MoU for conducting Final Location Survey of the proposed broad gauge line between Raxual and Kathmandu, both during October 2021.
- The signing of the Standard Operating Procedures (SOPs) for starting passenger train services on the Jaynagar-Kurtha section took place during September 2021.
- Regarding inland waterway connectivity between India and Nepal, discussions are underway for operationalisation of four multi-modal routes using inland waterways of India.
- Major initial projects (in 1950s) included Tribhuvan Rajmarg, East-West Highway (Mahendra Raj Marg), development of Tribhuvan university and some of its affiliates, Kathmandu water supply project , and various irrigation development, drinking water and hydro power projects.
- A major project underway is the construction of Nepal’s National Police Academy (NPA) at tendered cost of US$ 75.18 mn; it is the single-largest project of India in Nepal and expected to complete in 2025.
- In August 2005, India and Nepal signed an MOU for developing 4 Integrated Check Posts (ICPs) along the Indo-Nepal border, with India's technical and financial support. ICPs at Birgunj, Biratnagar, and Nepalgunj have been completed at a total cost of US$ 52.9 mn. An additional US$ 32.96 mn is allocated for the Bhairahawa ICP, and a new ICP at Dodhara Chandani in western Nepal is being built for an estimated US$ 45 mn.
- In the past 15 years, development partnership has advanced significantly with key connectivity projects. A major milestone was the inauguration of train operations on the Jaynagar-Kurtha section of the Jaynagar-Bardibas rail link in April 2022, Nepal's first cross-border broad-gauge rail project.
- In the energy sector, cooperation started with projects like Trishuli and Pokhara Hydropower, and has since advanced with the commissioning of the Motihari-Amlekhgunj Petroleum Pipeline (INR 329 cr.) in 2019. This first cross-border pipeline in South Asia has reduced fuel prices in Nepal by NR 2 per liter and alleviated road congestion.
- 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. Koirala Institute of Health Sciences, Dharan (125.cr), construction of 5 storied OPD complex of Bir Hospital (INR 100 cr.), Kathmandu, are some major projects.
- Key education sector projects include the Nepal Bharat Maitri Vidalaya in Pokhara (INR 125 cr.), Manmohan Memorial Polytechnic (INR 32 cr.), Tri-Chand College development, and Tribhuvan University projects (library, Gandhi Bhawan, hostels). Other significant projects are the Pashupati Dharamshala in Kathmandu (INR 22 cr.), Patan Industrial Area development, installation of over 3000 shallow tube wells in Terai (INR 18.10 cr.), and a museum in Lumbini (INR 5.9 cr.). The ongoing Nepal Bharat Maitri Polytechnic in Hetauda has a budget of INR 39.30 cr.
- HICDPs, formerly known as Small Development Projects (SDPs), are short-term projects with a budget of up to INR 3.0 cr. (NR 5.0 cr.). They focus on sectors like healthcare, education, sanitation, and infrastructure in Nepal. Since 2003, the Government of India has undertaken over 551 HICDPs, with 490 completed and 61 ongoing, totaling around INR 781 cr. (NR 1249 cr.). These projects are managed through local Nepali authorities.
- The Government of India is gifting ambulances and school buses every year to various institutions working in health and education sectors in Nepal. So far, Government of India has distributed 1009 ambulances and 300 school buses in different parts of Nepal.
- Consignment of flood and landslide relief material was handed over in 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 handed over in November 2022 to Government of Nepal.
- After the Jajarkot earthquake, Government of India provided 5 tranches of relief supplies to Nepal consisting of tents and tarpaulin sheets, sleeping bags, blankets, vital medicines, 200 pre-fabricated houses, etc.
- LOC of US$ 100 million towards Road projects, rural electrification projects, power transmission projects and hydro power projects was extended vide OM dated 16 March 2007.
- On September 1, 2010, a LOC of US$ 250 million was extended to the Government of Nepal for infrastructure projects like highways, airports, bridges, and irrigation. Out of 19 road projects, 10 are completed, 4 are terminated, and 2 of 4 power projects are completed. The completed projects are as follows:
- Following the earthquake of April, 2015, the Government of India committed USD 1 billion, comprising USD 250 million as a grant and USD 750 million as a Line of Credit, for post-earthquake reconstruction projects in Nepal.
- A Dollar Credit Line Agreement for USD 750 million was signed between the Government of Nepal and EXIM Bank of India in September 2016. The LOC became operational in February 2017.
- USD 150 million (USD 100 million as a grant and USD 50 million from the 4th Line of Credit) was allocated to the housing sector to support 50,000 housing beneficiaries in Gorkha and Nuwakot districts of Nepal.
- A grant of USD 50 million each was allocated for reconstruction in health, education and cultural heritage sectors.
- During Hon'ble EAM Dr. S. Jaishankar's visit to Nepal on January 4-5, 2024, India announced a financial assistance package of approximately NPR 1,000 crores (USD 75 million) for reconstruction after the Jajarkot earthquake, with most of it provided as grant assistance.
