A Memorandum of Understanding was signed on July 18, 2008 by the Embassy of India, Kathmandu with District Development Committee, Chitwan and Gunjaman Hospital, Pithuwa VDC, Chitwan for providing a grant assistance of NRs.29.99 million for construction of double-storied building for the Hospital under the India-Nepal Economic Cooperation Programme.

Despite the presence of medical facilities in the district headquarters of Bharatpur, the eastern part of Chitwan District needs augmentation of healthcare services. Patients have to travel more than 20 kilometer to avail of health services at Bharatpur. Gunjaman Singh Memorial Trust, a non-profit social welfare organisation engaged in providing health related education especially to the underprivileged people has established Gunjaman Hospital with the community participation. The new infrastructure of the hospital being constructed with the Indian assistance will have indoor patient capacity of 50 beds and provide healthcare services to over 1.13 lakh population of seven VDCs of eastern parts of the district.

The project will be implemented by the District Development Committee, Chitwan, while an oversight committee consisting of representatives from Hospital Management and District Health Office will oversee the implementation of the project.

This is the fifth infrastructure project undertaken by the Government of India in district Chitwan in recent years, in addition to one hydraulic excavator gifted to Pithuwa Irrigation Management Committee in May 2007. Overall, the project is among more than 280 large and small projects currently being implemented under the India-Nepal Economic Cooperation Programme in the sectors of education, health, community development and infrastructure covering all districts of Nepal with an outlay of over NRs.22 billions.