Connectivity Infrastructure
Nepal
Grants and Concessional Finance
- Bharat-Nepal Cooperation for developing modern infrastructure in Nepal began in 1951 with construction of Gauchar Airport in Kathmandu (completed in 1954).
- GoI provides substantial financial and technical assistance to Nepal for implementation of large development and infrastructure and connectivity projects , as well as small development projects/ high impact community development projects in key areas of education, health, irrigation, rural infrastructure, livelihood development, etc. all across the country. A series of cross-border connectivity project like rail links, roads, Integrated Check Posts are under implementation with GoI’s grant assistance.
- Despite COVID restrictions, work on the ongoing connectivity and developmental projects continued and showed considerable progress. In February 2021, 13 Terai road packages were completed under GOI assistance of INR 400 crores and handed over to Government of Nepal. Some of the High Impact Community Development Projects (HICDPs) inaugurated in Covid period include Fateh Bal Eye Hospital in Nepalgunj, Rapti Cold Storage Building in Lamahi Bazar and Rehabilitated Small Hydro Power Plant in Jumla District. Bharat 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.
- 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 NR 5.0 cr. (INR 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. (NR 1155 cr.). The projects are implemented through local authorities of Nepal Government.
- 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.
