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

4 SMALL DEVELOPMENT PROJECT (SDP) PROGRAMME MOU signed between GOI and GON in November 2003 and renewed in June 2006. Projects costing less than NRs. 3 crores (approximately IRs. 1.875 crores). Focus areas: -Education -Health -Community Development

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

6 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 equipments Rural electrification, micro hydroprojects Rural roads, small bridges Canals (for example, Rajkulo in Lalitpur) Rural drinking water projects, cold storages Developmental training (e.g. for GON’s Local Development Officers and Finance Officers)

7 SMALL DEVELOPMENT PROJECT (SDP) PROGRAMME SOME STATISTICS : No. of SDPs (as of Sept 2008): 252 Total value: NRs.384 crores (IRs.240 cr) Completed: 82 No. of school projects: 133 No. of districts covered so far: 67 No. of beneficiaries: over 10 million

8 Nepal-Bharat Maitri Auditorium, Gorkha

9 Shree Janata Secondary School, Garahiya Dumaria, Sarlahi

10 Shree Mahakaruna Sakyapa Vidyalaya, Lomanthang, Mustang



13 SOME OTHER POPULAR GRASSROOTS PROGRAMMES GIFTING OF AMBULANCES Since 1994, over 200 ambulances presented across 60 districts in Nepal. EYE CAMPS Since 2001, assistance to Nepal Netra Jyoti Sangh for cataract and trachoma surgeries through country-wide eye-camps. So far, almost 3 lakh patients have been examined and more than 45,000 surgeries performed in these camps, with total Indian assistance of NRs. 5.5 crores. Since 2007, a new School Eye Health Care Programme has also been launched.

14 FINDINGS OF RECENT 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.

15 OVERALL ONGOING PROJECTS (Including Large and Small Projects) DURING 2003-2008 305 projects (as of Sept 2008) Total outlay: over NRs.2408 crores Education, Health, Community Development, Infrastructure Covering all 75 districts of Nepal

16 LARGE HEALTH PROJECTS 200 Bed Emergency and Trauma Centre at Bir Hospital, Kathmandu Establishment of Bhaktawari Hari Eye Hospital in Krishnanagar, Kapilvastu Continued faculty assistance to BP Koirala Institute of Health Sciences, Dharan

17 LARGE EDUCATIONAL PROJECTS Manmohan Memorial Polytechnic at Biratnagar Proposed polytechnic at Hetauda, Makwanpur Increased number of scholarships to Nepalese students for studies in Nepal and higher studies in India

18 LARGE S&T PROJECTS Establishment of proposed Science Learning Centre in Kathmandu Setting up of INSAT Receiving Station at the Department of Hydrology & Meteorology in Kathmandu Proposed establishment of a Super Computing Centre in Kathmandu


20 TERAI ROADS PROJECT MOU for DPR preparation signed in June 2006 Upgradation of over 1500 km of feeder roads and postal roads in Terai (part of Strategic Road Network identified by GON) Phasing along 3 Priority Lists Phase-I to include 20 roads totalling 657 km with tentative cost of IRs. 700 crores Phase-I Roads

21 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. Estimated cost of the project is about IRs. 35 crore. DPR for the project had been completed. However, recently 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.

22 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 ICP is being undertaken under Phase-I of the project, for which the Detailed Engineering Report is being finalised. Estimated cost is about IRs. 200 crores. A high-level bilateral Project Steering Committee is monitoring the project to fast- track it.

23 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 IRs. 1300 crores. Will significantly facilitate cross-border movement and will be a major boost for promoting trade and commerce.

24 India’s Development Assistance to Nepal (Ministry of External Affairs Budget Only) (in Crores - IRs)

25 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. Government of India tripled its development assistance to Nepal in 2006-07 under its ‘Aid to Nepal’ programme. 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.

26 India’s Assistance for the Peace Process in Nepal 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; 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;

27 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.;

28 India’s Assistance for the Peace Process in Nepal During the visit of Prime Minister Koirala to India in June 2006, the two sides agreed to expedite progress on long-term mega infrastructure projects in the areas of roads, railway linkages, border infrastructure, water resources, construction of an oil pipeline, Special Economic Zone, airports upgradation, and other areas to be mutually agreed upon by both governments.

29 India’s Assistance for the Peace Process in Nepal 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. India’s assistance programme in Nepal is guided by this vision.

30 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

31 Thank You


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