| Embassy of
India, Kathmandu, Nepal
- India - Nepal : Political India-Nepal
Relations Popular and cultural ties with Nepal have consistently been close and have reflected the historical, geographical, cultural and linguistic links between the two nations. This also manifests in State to State relations which have grown stronger over the years, reinforced by regular exchange of visits at high levels, notwithstanding the political changes in both the countries in the past few years. The signing of the India-Nepal Treaty of Peace and Friendship in 1950 established the framework for the unique ties between the two countries. Since the early fifties, India has contributed significantly to Nepal’s economic development. Beginning with major irrigation projects such as the Kosi and Gandak barrages, Indian assistance has significantly contributed to the development of the economic infrastructure in Nepal. Indian assistance to Nepal has increased over the years. Since 1997 annual GOI disbursement has been around Rs.70 crores. Major Indian projects have been completed (BP Koirala Institute of Health Sciences (BPKIHS) – Rs.88 crores), or are due to be completed, (22 Bridges on the East-West highway – Rs.55 crores). [This does not include GOI subsidy for the supply of commodities like sugar, rice, cement, fertilisers, petrochemicals, etc.; refund of excise duty levied on items exported from India; Rs. 50 crores stand-by credit facility, etc. ] A High Level Task Force, (at the level of Principal Secretary to PM and Chief Secretary to the Government of Nepal) oversees progress in Indian-assisted Projects to Nepal. Recent Bilateral Contacts Political developments in Nepal and India notwithstanding, recent months have witnessed bilateral contacts at practically all levels. v The High Level Task Force Meeting was held in June, 2000. The Leader of the Indian delegation was Principal Secretary to the Prime Minister and included among others, Finance Secretary, Secretary(Planning), Secretary(Water Resources), Director(AIIMS) and representatives of Ministry of Commerce and Surface Transport. A number of new projects were considered, including improving physical facilities and infrastructure at important border customs stations and check-posts, pilot projects in rural and community development, small sized hydro-power project, milk and dairy development, development of information technology institute, etc,. Ongoing and completed projects were also reviewed. v Foreign Secretary Lalit Mansingh paid a bilateral visit to Nepal on 19-21 May, 2000. Entire gamut of bilateral issues were discussed. Foreign Secretary called on Prime Minister, Home Minister and Water Resources Minister of Nepal, besides the Leader of Opposition. v Visit of Nepalese Foreign Minister Chakra Prasad Bastola took place from May 7 to 9, 2000. He had useful discussions in Delhi with External Affairs Minister, Home Minister and Water Resources Minister, besides calling on President and Prime Minister of India. v Indian External Affairs Minister
Shri Jaswant Singh visited Nepal in September, 1999. Besides
inauguration of BPKIHS, Dharan and facilities at Paropkar Hospital,
the visit provided an opportunity to renew and existing areas of co-operation.
Joint Press Statement was issued after the visit. v Nepalese Foreign Minister Dr. Ram Sharan Mahat’s visited India from August 17-19, 1999 for consultations prior to the forthcoming SAARC Summit in Kathmandu. During the visit, FM Mahat called on President and Prime Minister, besides meeting the External Affairs Minister. Although the visit was primarily in the SAARC context, it did provide opportunity for an exchange of views on bilateral matters as well. v At the invitation of the President of India, Their Majesties, King Birendra and Queen Aishwarya of Nepal paid a State visit to India from January 24-29, 1999. They were Chief Guests at the Indian Republic Day parade. The visit also provided an occasion for an overview of bilateral relations and exchange of views on matters of mutual interest. During the visit, His Majesty the King called on the President and also had separate meetings with Vice-President, Prime Minister, External Affairs Minister, Home Minister and Commerce Minister. The discussions covered the entire gamut of bilateral relations, in particular the potentials for long-term bilateral co-operation in core sectors including water resources, trade & transit, tourism etc. v The President, accompanied by Commerce Minister and four Members of Parliament, paid a State visit to Nepal from May 28-30, 1998.During his visit, the President was received in audience by His Majesty the King , and received the Prime Minister and leaders of major political parties of Nepal, academics, intellectuals and business leaders.The visit was successful in underlining the goodwill and warmth that characterise our bilateral ties with Nepal, and has helped in consolidating the deep-rooted friendship and understanding between the two countries. v During former Prime Minister Shri I.K. Gujral’s visit to Nepal in June 1997, a keen desire, cutting across party lines, was in evidence to forge inter-linkages in new spheres and elevate existing relations to a new high.The visit was marked by the signing of a Power Trade Agreement and an MOU on Civil Aviation matters, besides the exchange of Instruments of Ratification of the Mahakali Treaty. v In pursuance of the directives issued by the two PMs at the conclusion of PM’s visit to Nepal in June, the Nepalese FS visited New Delhi in August 1997 for Foreign Secretary level talks.This was followed by a visit by the Nepalese Foreign Minister Kamal Thapa in September 1997.The King and Queen of Nepal paid a private visit to India in October 1997. India- Nepal Trade and Economic Relations Nepal is a land-locked country, surrounded by India in the east, south and west. It has a population of around 24 million and population density of 144 per sq km. With the GNP per capita of approximately US $ 226 (down from per capita income of US $ 240 in the year 2000-01), Nepal is among the world's poorest countries. The economy is pre-dominantly agricultural. Agriculture accounts for 40% of GNP and 80% of labour force. Nepal's industrial sector is small; manufacturing activity provides employment to about 1% of the labour force. 2. Nepal does
not have any large mineral resources. Water is its biggest natural
resource. Nepal has an estimated potential to generate 83,000 MW of
electricity, which remains untapped due to resource constraint. The
current installed capacity is 591 MW only. Forests are the second
largest natural resource. India-Nepal Bilateral Trade4. This Treaty is a symbol of the very special relationship that prevails between India and Nepal. It is a non-reciprocal Treaty which offers extremely beneficial terms to Nepal. Formal trade relations between the two countries were established in 1951 with the signing of the Treaty of Trade. It was modified and renewed in 1961 and 1971, and incorporated provisions regarding transit facilities extended by India for Nepal's trade with a third country, as well as on cooperation to control unauthorised trade - mainly smuggling of third country goods from Nepal into India and vice-versa. In 1978, instead of a single Treaty, three different agreements were signed. India modified these significantly in 1991, after the advent of democratic government in Nepal, to provide substantial unilateral concessions. In December 1996, the Treaty of Trade was renewed for a further period of five years with the provision for automatic renewal of the Treaty every five years. 5. Under the Treaty of Trade India provides, on a non-reciprocal basis, duty free access, without quantitative restrictions, to the Indian market for all Nepalese-manufactured articles barring a short negative list. Such imports from Nepal are facilitated through a simple procedure of Certificate of Origin issued by Federation of Nepalese Chambers of Commerce and Industry and other affiliated Chambers of Commerce to which this power has been delegated by His Majesty's Government of Nepal (HMGN). 6. The Protocol to the India-Nepal Treaty of Trade was renewed with some modifications in February 2002. All 12 Articles of the Treaty have been renewed unchanged. Continued access will be provided to the Indian market for Nepalese-manufactured goods on non-reciprocal, preferential, duty-free basis. The Treaty in its revised form is proving to be an effective instrument in providing a strong impetus to industrial growth and economic development in Nepal and in expanding bilateral trade ties with India. A transition period was provided until 16th April, 2002 for the new provisions to come into effect. 7. Modifications have been made in certain clauses of the Protocol to the Treaty, the salient features of which are :-
Growth of India-Nepal Bilateral Trade8. The growth rates in the Nepalese exports and imports to India, as well as Nepal's global trade figures are given below.
9. Major exports to India include vanaspati, tooth paste, jute goods (sackings, twines, hessian, etc.), polyester and acrylic yarn, pulses, hides and skins, herbs, cardamom, rice bran oil, ginger, oil cakes, noodles, etc. 10. Major items which Nepal imports from India include mechanical equipment and spare parts, medicine, transport vehicles and spare parts, cotton textile, cement, cotton thread, chemicals, electrical equipment and goods, rice, baby food and other milk products, agricultural equipment and parts, tobacco, vegetables, coal, writing and printing paper, synthetic textile, cumin seed and pepper, sugar, and books and magazines. 11. It can be seen from the above figures that since 1995-96 the Nepalese exports to India have been growing at a rate which far exceeds the growth rate of Nepal's overall exports. In general, both imports and exports of Nepal have increased over the years. In the year 2000-01, Nepal's global imports were worth NRs. 113 billion, of which NRs. 46 billion were from India , i.e., around 41%; and Nepal's global exports were around NRs. 57 billion of which around NRs. 27 billion worth were to India, i.e., nearly 47%. In the year 2001-02, 60.7% of Nepal's over all exports were to India and 42.5% of Nepal's imports were from India. 12. The liberal trade regime adopted by India under the Treaty of Trade has been instrumental in boosting Nepalese exports to India. The above figures from Nepal Rastra Bank for the Nepalese fiscal years 1998-99 , 1999-2000 and 2000-2001 show a surge in Nepalese exports to India amounting to 42.5% ,80.5% and 28.7% respectively. Nepalese exports to India increased by five times from 1996 to year 2001 from exports worth Rs. 5 billion to exports worth Rs. 27 billion. 13. In the current fiscal year also, the picture is more or less unchanged. The first six months of the year 2002-03 saw exports from Nepal to India worth Rs. 12.9 billion take place. Extrapolating from this figure, exports to India worth around Rs. 26 billion can be expected to take place in the current fiscal year. This would be the same as the value of exports to India from Nepal in the year 2000-01. 14. On the other hand, the growth of Nepalese imports from India has not been so uniform and the figure touched a mere 1 percentage mark in 1996-97. This figure has in subsequent years grown at a double-digit rate with 10.0%, 17.5% and 27.4% successively. 15. Among the positive implications of the Trade Treaty for Nepal, one of the most important has been to widen the basket of Nepalese export commodities to India. The traditional Nepalese exports to India have been jute goods, pulses, ginger, oil cakes, cardamom, rosin, skin, etc. However, a number of new commodities were added to the Nepalese export basket subsequent to the Trade Treaty, such as vanaspati, toothpaste, acrylic and polyester yarn, Ayurvedic medicine, soap, copper wire and other copper products, paper and wax products. 16. In 1999-2000, vanaspati, tooth paste and soap, were exported to the tune of NRs 2.7 billion, NRs 2.2 billion and Rs 1.08 billion respectively. The impact of these new commodities is all the more evident by the fact that just these three commodities contribute the vast majority of Nepalese exports to India. Trade Balance with India17. India has traditionally enjoyed a substantial favourable balance of trade vis-à-vis Nepal. Among the several reasons for this are Nepal's underdeveloped industrial base, narrow range of exports, facility of easy import of daily use items from India, including import of inputs for some of Nepal's major exports such as ready-made garments, and unauthorised trade through the long and open border. 18. The statistics as recorded by HMGN indicating the balance of trade of Nepal, both with India, and in over-all terms, are given below. It can be seen from the HMGN figures, that while India continues to have a favourable balance of trade with Nepal, the Nepalese trade deficit with India has been decreasing steadily due to increasing Nepalese exports to India.
India's share in Nepalese foreign trade19. India's share in Nepal's exports, imports and total volume of trade over the last few years is given below:
Air Accord between India and Nepal20. The Air Services Agreement, between India and Nepal was signed in 1960s. A Memorandum of Understanding on the Air Services Agreement was signed between India and Nepal in June 1997. It increased the air seat capacity from 4000 per week to 6000 per week; India also gave two additional destinations for the designated airlines of Nepal, to Lucknow and Bangalore. Joint Ventures and Foreign Direct Investment21. One of the important incentives for foreign direct investment is free access to the large Indian market. By virtue of its proximity and the Trade Treaty with India, close economic linkages between the two countries have manifested themselves, inter-alia, through Indian investment and joint ventures in Nepal. As of date, there are over 265 approved Indian joint ventures in Nepal of which over 100 are operational, with a cumulative total Indian investment amounting to between 36-40% of the total Foreign Direct Investment in Nepal. 22. The total project cost of these 265 projects is around 28.5 billion, with fixed investment amounting to Rs. 21.9 billion and the foreign investment component amounting to Rs. 7.427 billion. These joint ventures are in practically every sector, including tourism, infrastructure, consumer durables & non-durables and export oriented industries like garments and carpets. A number of Indian companies, including Dabur, Hindustan Lever, Colgate, etc., have established their manufacturing base in Nepal with the objective to export their finished products to India. 23. Government of India has established a special "Nepal Window" to facilitate approvals for Indian investment in Nepal as there is no outgo of foreign exchange. The limit for 'fast track' approval by Reserve Bank of India for investments in Nepal has been raised in July 2000 to Rs. 350 crores (Indian Currency). 24. There is also a proposal to conclude a Bilateral Investment Promotion and Protection Agreement between both the countries. 25. India has been the foremost country to invest in Nepal. During the last fiscal year, a total of 21 Indian investment projects came to Nepal with Rs. 679.77 million as foreign investment, accounting for around 56% of total FDI flows into Nepal.
Double Taxation Avoidance Agreement26. The "Avoidance
of Double Taxation and the Prevention of Fiscal Evasion With Respect
To Taxes On Income" agreement between HMGN and GOI was signed
in 1987 to avoid the hurdles of double taxation. The agreement is
more than a decade old and shall remain in force indefinitely unless
either of the contracting states gives written notice of termination.
July
5, 2000 Indian Aided Projects in Nepal - an Overview BRIEF ON INDIAN DEVELOPMENT ASSISTANCE TO NEPAL India has been deeply involved in Nepal’s economic development since the last fifty years. Indian financial and technical assistance to Nepal began in the early 1950s when, on a request from His Majesty's Government of Nepal (HMGN), the Government of India agreed to the construction of the Tribhuvan Airport at Kathmandu and the Tribhuvan Rajpath connecting Kathmandu to Birgunj, in the south of Nepal bordering Raxaul in India. Around the same time, a separate body was set up to execute projects with Indian assistance in Nepal. For the first two Five Year Plans of Nepal, India was the only country involved with Nepal’s development. Later, other countries and international bodies began to actively participate in the economic development of Nepal. The initial focus of India's assistance, in deference to HMGN’s priorities, was on infrastructural projects, involving the construction of roads, bridges, hospitals and airports. While infrastructure continued to remain the priority focus, projects also began to include health, industrial estates and other sectors including quick disbursing items such as ‘solid waste handling equipment for Kathmandu & Lalitpur Municipalities’ and railway locomotives and coaches. Surface Transport Sector About 78.5% of the Mahendra Raj Marg,
a highway that runs the entire length of Nepal (1024 kms.) from the
east to the west along the southern terai, has been constructed by
India. In addition, roads from Kathmandu to Dakshinkali, Trishuli,
Balaju, Godavari and Raxaul via Hetauda, Sunauli to Pokhara, Rajbiraj
to Koshi Barrage and Janakpur town road are contributions of Indian
assistance. India has also constructed a number of bridges on these
roads and separately two bridges on the river Bagmati at Kathmandu
and one on the river Mohana. The bridge on the river Sirsiya
between the towns of Raxaul on the Indian side and Birgunj on the
Nepalese side has also been completed and opened for traffic movement.
The Bilateral Agreement for the construction of 22 bridges on the Kohalpur-Mahakali sector of the East West Highway in Nepal was signed in February, 1996 during the visit of the Prime Minister of Nepal, Sher Bahadur Deuba to India. The Government of India awarded the Consultancy and
Project Management contract to M/s RITES and M/s NATPAC, and the construction
contract to M/s. Gammon India Ltd. The bridges have been constructed in some of the most
difficult terrain. These difficulties were compounded due to the presence
of artesian wells that caused piers and foundations to tilt and sink,
and the occurrence of flash floods. Other contractors and countries
had given up this work earlier, after encountering these obstacles. Benefits With the construction of the 22 bridges on the Kohalpur Mahakali sector of East West Highway, the Mahendra Raj Marg in Far Western Nepal has become operational even during monsoons and has opened up this part of Nepal bordering India to new possibilities in trade, investment and economic growth. This has already started a transformation in the socio-economic activities in the entire western region of Nepal. Apart from other benefits, development of tourism and industrial activities in this region are sure to get a boost as a result of this project. These bridges would be inaugurated and dedicated to the nation shortly. Tanakpur-Mahendranagar Link Road: Construction of an all-weather link road connecting Tanakpur barrage with Mahendra Raj Marg (East West Highway) is one of GOI’s obligations under the Mahakali Treaty. A joint on-site inspection to finalise the alignment of the proposed 14.5 km. link road was conducted in February 1999 and the modalities for the Project were firmed up in subsequent discussions with the representatives of the Department of Roads, HMGN. The geotechnical investigations have since been completed by Consultant, RITES. DPR and the detailed engineering design for the link road have been submitted by M/s RITES. The process of deciding the contractors have been initiated Raxaul/Birgunj Broad Gauge Rail Link: Letters formalising the construction of the Raxaul-Birgunj Broad Gauge Rail Link under Indian assistance, were exchanged during Prime Minsiter’s visit to Nepal in June 1997. The rail link is linked to the Nepal Multi-modal Trade and Transit Facilitation Project (NMTTFP) under which an Inland Container Depot (ECD) is being constructed in Birgunj. The World Bank is extending a loan to HMGN for the ICD. The Governement of India is constructing the Rail Link between Sirsiya in Nepal and Raxaul in India as a grant-in-aid project. The third country trade for Nepal passes through the Calcutta Port, both for imports and exports. Most of this (about 70 % of the total trade) is routed through the Raxaul-Birgunj border crossing (there are 20 points for trade with India, and 15 transit points for trade with third countries). The decision of Indian Railways for gauge conversion, including on the Muzaffarpur-Raxaul Section from Meter Gauge to Broad Gauge, has opened new possibilities for Nepal. In view of the importance of a direct railway link between Nepal and the Gateway Port of Calcutta, and realising the possibilities which Broad Gauge railway link between Raxaul and Sirsiya opens up for Nepal, the Government of India had agreed to set up this link which included a distance of 5.3 kms between Raxaul and Sirsiya and about 6 kms of railway track inside the ICD. The work on the rail link has commenced in November 1999 and is expected to be completed some time later this year. There had also been delays on the part of HMGN to acquire and hand over land outside the ICD and on the part of the contractors to hand over land inside ICD. While land outside the ICD, area B and C inside the ICD have been completely handed over, some portion of area A and complete area D inside the ICD is yet to be handed over to the Indian Railways. Health Sector India has been traditionally associated with the development of some Hospitals in Kathmandu.These include Bir Hospital, Paropakar Maternity Hospital and the Police Hospital. B.P. Koirala Institute for Health Sciences, Dharan: The B.P.Koirala Institute of Health Sciences(BPKIHS), Dharan, is one of the outstanding symbols of Nepal-India friendship. It is the most prestigious project undertaken in Nepal. The B.P. Koirala Institute of Health Sciences(BPKIHS), Dharan was inaugurated and dedicated to the nation in September 1999 by the Prime Minister of Nepal in the presence of the External Affairs Minister of India. During the inauguration, an announcement was made by EAM to extend our faculty support to BPKIHS for an additional 5 years till 2009 on the basis of the request received from HMGN. This project was completed on schedule without any cost overruns, even though the civil works in the project were increased by ten per cent. This Institute is now making a very significant contribution in the health care sector for the entire Eastern Region of Nepal. A large number of patients from India are also benefiting from the facilities which have been created. The successor to the Project Implementation Authority (PIA), the Institute Advisory Authority (IAA) is in the process of being finalised through discussions with the Nepalese side. Supply of Equipment to Paropakar Maternity Hospital
An assistance was extended to the Paropakar Maternity Hospital in
Kathmandu for procuring sophisticated medial equipment to facilitate
the setting up of Maternity and Neo-natal Intensive Care Units at
the Hospital. The supplies have since been completed and the
ICUs were formally inaugurated and handed over to the Hospital authorities
on September 10, 1999 during EAM’s visit to Nepal. GOI had been
extending assistance to this hospital since its inception in 1959.
· Gifting of a Mobile Medical Clinic-cum-Ambulance · Three workshops for the physicians and nurses in maternal and child care · Learning aids and resource material consisting of books, computer, VCR and TV Bir Hospital Expansion Project: The Prime Minister of India during his visit to Nepal in June, 1997, laid the foundation stone of the 200-Bed Emergency and Trauma Centre, which would be an extension of the existing Bir Hospital set up by India in the 1970s. A high-level Experts Group, led by the Director of the All India Institute of Medical Sciences, has been set up to advise GOI on the project parameters. A team of architects from Central Design Bureau, of the Ministry of Health visited Kathmandu in February and September 1998 to prepare the project design and parameters. The inputs required from the Nepalese side in the form of local by-laws, rules and regulations, existing equipment in Bir Hospital have been provided.A four member Experts Group led Dr. P.K. Dave visited Kathmandu from May 31st to 4th June, 2000 for holding discussions with Bir Hospital Authorities and HMGN to firm up the project parameters. Project parameters were firmed up during the visit. Goitre Control Programme: Over the last 24 years GOI have assisted in the control of iodine deficiency in hill areas of Nepal through the supply of iodised salt to Nepal. Our commitment on the programme ended in March, 1998. The programme has been very successful in meeting its objective of making the iodized salt available in the remote areas of Nepal and controlling of the incidence of goitre. Education SectorIndia has contributed towards the development of various Institutes and Organisations in Nepal, including the Tribhuvan University, Engineering School, and National Archives. A Museum, Library -cum-Documentation Centre was constructed by India at the Institute of Forestry, Hetauda. GOI also contributed towards the development of the Lumbini Museum. Quite a good number of books were also presented by GOI for the Lumbini Library. India has been regularly deputing experts to various departments of Universities and Hospitals. Donation of Books:
GOI provides financial assistance every year for purchase and presentation
of books to various educational institutions in Nepal, including Tribhuvan
University, Kathmandu University, Colleges and various Libraries. Welfare Schemes for Ex-Servicemen The Indian Embassy disburses about NRs. 5600 million annually to over 1,05,000 retired personnel of the Indian Armed Forces. Sixteen District Soldier Boards have been set up in various parts of Nepal to assist in welfare activities for ex-servicemen GOI have also been providing financial assistance every year for various welfare schemes for ex-servicemen in Nepal. These include Drinking Water Projects in villages and hamlets with predominant ex-servicemen populations and the Medicine Pack Scheme for ex-servicemen who live in remote areas. Duty Refund Programme A substantial amount is refunded by Government of India to Nepal under the Duty Refund Programme. As per the existing arrangement between India and Nepal, excise duty is levied and collected in India on goods exported from India to Nepal under Duty Refund Procedure (DRP) against rupee payments. Other Sectors Assistance has been extended by GOI in a wide variety of sectors. Three Industrial Estates, one each at Patan, Nepalgunj, and Dharan have been constructed by India. In 1994, Government of India assisted in the construction of an Industrial Estate at Rajbiraj. The other sectors where India has extended assistance include Posts and Telecommunications, Village and Urban Development, Traffic Management, Forestry, Horticulture, Veterinary Sciences and Geological Investigation. Some examples are: § In the Telecommunications
sector, India has assisted in setting-up and commissioning of Telephone
Exchange and cable network at Rangeli. § Services of Indian experts
have been extended to Nepal Creative Art Trust. § 10,000 MT of
rice was also gifted for flood affected victims during § Government of India
provided four locomotive engines and 18 coaches for Janakpur Railways
between 1994-1996. § Government of India
also supplied corrugated galvanized iron sheets for construction of
houses for the flood victims in 1994-95. § India has been
contributing towards the repair work and supply of materials to the
Tulsi Mehar Ashram. § For Kathmandu
and Lalitpur Municipalities, GOI have recently supplied a wide variety
of sophisticated cleaning and solid waste handling equipment ranging
from dumper placers, containers, water sprinklers and cranes. § Eleven
Ambulances were gifted to various non-profit charitable organisations
in 1998 & 1999. § The Tirumala
Tirupati Devasthanam Trust, Andhra Pradesh has constructed a Yatri
Niwas at Janakpur. § In March
1998 Government of India provided financial assistance to cover
costs of technical inputs and materials in connection with the Sri
Krishna Mandir Conservation Project at the Patan Durbar Square, Lalitpur.
It is one of the monuments in the World Heritage List of UNESCO. § Government. of India
also granted assistance Nepal Netra Joyti Sangh,
Malangwa in 1999-2000 for completion of their hospital building. § Government of India
granted assistance to Chanidanda Madhyamic Vidyalaya,
Syngja in 1999-2000. § Assistance
has also been granted to Nepal-Bharat Frienship
School in Pokhra in 1999-2000. Welfare Activities for Indian Armed Forces Ex-Servicemen of Nepal 1. India has always been proud to have Nepalese as soldiers in her Defence Forces and has made every effort to ensure that they are looked after and cared for in their twilight years. 2. As of now, we have over 80,000 ex-servicemen residing in Nepal. The Government of India has made every effort to ensure that these ex-servicemen, their families and dependants are looked after in the best possible manner. To ensure this, the Government of India has established “The India Ex Servicemen Welfare Organisation in Nepal (IEWON)” functioning within the Embassy of India under the chairmanship of none other than HE Shri Deb Mukharji, Ambassador of India to Nepal. 3. Welfare of ex-servicemen is undertaken in the remotest areas of Nepal where our brave ex-servicemen settle down to leading a quiet and contended retired life. It has been our endeavour to reach out to them wherever they may have chosen to reside. To this effect, we have District Soldier Boards (DSBs) functioning in various locations in Nepal, from Baitadi in the West to Ilam in the East. Senior ex-servicemen who act as our representatives and means for us to reach out and extend welfare schemes to those ex-servicemen in need, man the DSBs. For purposes of pension, we have apart from Kathmandu, two pension paying offices functioning at Pokhara and Dharan. 4. Our welfare activities can be broadly listed in the succeeding heads. 5. Medical Facilities. It has been endeavour to provide medical facilities to ex-servicemen within Nepal. Each ex-servicemen is provided with a medicine pack once a year containing essential basic medicines with directions for usage. A sum of rupees 70 lacs is expended on this account annually. For the next stage of his medical treatment, we have two Medical Inspection Rooms at Pokhara and Dharan, each manned by a male and lady doctor. These facilities are fully equipped with X-Ray, Lab, ECG and such like facilities. At Kathmandu we are in he process of making a MI Room functional. Presently the Indian embassy doctor visits this MI Room and provides free treatment to the ex-servicemen. For cases where specialist treatment is required, 13 Indian Army Medical Welfare Teams visit Pokhara, Dharan and various DSBs each year. These teams consist of Eye, Dental and Medical specialists. A sum of Rs 90 lacs is expended on making these specialist teams available for our ex-servicemen in Nepal. 6. Hundreds of cataract operations are performed, dentures made and spectacles issued to ex-servicemen and their dependants. In addition, the ex-servicemen can visit Army Hospital in India for free treatment. 7. We have also introduced a scheme for eligible ex-servicemen wherein, by joining the Extended Medical Benefit Scheme, they are given financial assistance upto 1.6 lakh. This assistance covers illness such as Heat Diseases, Cancer, Renal Transplant/Dialysis & Limb Replacement which includes the pensioner and his spouse. 8. Drinking Water Projects. The aim of the Drinking Water Project Scheme is to provide water to village where the ex-servicemen population is large. All stores such as HDP pipes, CGI sheets and cement are provided for construction. Stores are transported by us to the road head nearest to the village from where it is further carried by the ex-servicemen themselves. The villagers through voluntary service also subsequently execute the project on ground. 9. So far 877 water projects have been implemented in various remote areas of Nepal. During the current year a sum of Rupees 1.6 crores has been expended on 64 Drinking Water Projects. 10. Educational Scholarships To assist the ex-servicemen in educating their children, scholarships are provided at the rate of 400.00 for children upto class 4th, Rs 750.00 for children upto class 8th, and Rs 1200.00 for children beyond class 8th and upto graduate level studies. Each year a sum of Rs eight lac is disbursed on this account. For those wards of ex-servicemen who undertake professional studies such as MBBS, BE, MBA, CA, LLM, MSc, MEd, MA both in India and Nepal, special scholarships in addition to complete tuition fees, cost of books etc is provided. We have now decided to include computer as a subject in higher Education. As of now we have two students studying MBBS, eight undergoing BE, and one MA studies. 11. Scholarships to Wards of Those Killed in Action. This is given to wards of those ex-servicemen who died in 1962, 1965,1971 operations and OP PAWAN, OP VIJAY and OP MEGHDOOT. The Scholarship package includes complete tuition fees, boarding and lodging charge, school bus charges, books and stationery charges, cost of uniform and clothing etc is re-imbursed on an annual basis by Army HQ. As of now 183 students are in receipt of this scholarships. Last year we disbursed NRs 55 lac on this scheme. 12. Financial Assistance to Schools. This is being provided to schools where the majority of children are wards of ex-servicemen. Assistance is provided for expansion and repair of existing school building, purchase of furniture, books, sports equipment's etc. A sum of Rs eight lac is expended on this account annually. 13. Vocational Training Schools. Wards of ex-servicemen themselves are trained in vocations in order to enhance their opportunities for employment, business etc. The courses conducted include stitching, knitting, typing (English & Nepali), English Language and computer training. The most popular of these courses is of course training on computers which is run at Kathmandu, Pokhara and Dharan. We have recently introduced computer training at DSB Butwal and DSB Gulmi also. At our DSBs, we run stitching and knitting classes. 14. Co-operative Stores. The ex-servicemen in Nepal had a long outstanding demand of being provided with CSD facilities as is applicable to their counterparts in India. We have contacted local factories in Nepal like Nepal lever Ltd, Nepal Batteries, Salt Trading Corporation and other companies producing stores required by our ex-servicemen. These factories have agreed to supply their items at factory rates and thus we have CSDs now functioning at Kathmandu, Pokhara and Dharan. These stores are also being taken to various Pension Paying Camps and have proved to be popular. 15. National Defence Fund Package for NOKs of soldiers killed in action and Disabled Soldiers during various operations Government of India has announced the following amounts for NOKs of those soldiers killed in action and also for those who were disabled during various operations since 1947 :- (a)
Rs 1,60,000.00 NC - Soldiers
disabled and invalided out from the Army with disability element Money from 14 GTC, 39 GTC, 58 GTC and 11 GRRC has been received and affected personnel are being paid the grant. 16. Benefits from Army Central Welfare Fund Ex-servicemen whose economic condition is very poor are being given financial assistance from Army Central Welfare Fund. The rates are as under :- (a)
For JCOs
-
6,400.00 NC Apart from the above, funeral grant 3,200.00 NC is also being paid to NOK of an ex-servicemen in the event of his death with effect from 01 Apr 2000. 17. NDF Package for NOKs of OP VIJAY Casualties The following benefits of NDF have been received from Army HQ, New Delhi for NOKs of OP VIJAY casualties. (a) Ex Gratia in lieu of grant from State Govt - 8 lac NC (b) Grant for Dwelling Units - 8 lac NC (c) Financial Assistance to Parents - 1.92 lac NC (c) Education Assistance to children - 1.6 lac NC per child (Max
3.2 lac NC) Latest Additions to Welfare Measures18. Welfare Project Buses. We have procured 04 buses (one each at Kathmandu and Dharan and two buses at PPO Pokhara) for subsidised conveyance of ex-servicemen from various places to Pension Paying Offices and back. 19. Nepal Bharat Maitri Vidhyalaya .This is a long outstanding demand of our ex-servicemen in Nepal i.e. to have our own school at Pokhara. A new school building is proposed to be constructed within our PPO complex.Till such time the new building comes up, the JCOs Accommodation is being converted to a school and the school will start functioning soon, initially as a primary school, to be subsequently upgraded once funds are made available. We have received Rs 30 lacs from Adjutant General's Branch as a one time corpus for the said school. 20. Teachers Training A sum of Rs 5 lac has been deposited as corpus in India and the interest accrued is being utilised for providing scholarships to wards of ex-servicemen undergoing courses like BEd and MEd. 21.
It has been our resolve to remain close to our ex-servicemen in Nepal
and reassure him that he has not been forgotten.It is our end endeavour
to keep our BHU PUUs smiling and happy. PENSION
PAYMENTS IN NEPAL 1.Historical Background. Prior to Independence in 1947 ex-servicemen and their families were drawing pension from border treasuries in India. After India's independence the responsibility of pension payments was taken over by the Indian Embassy. The first Military Attaché posted in 1949 took over the responsibilities thereafter. In 1950, some 300 disabled ex-servicemen drawing their pension from Pokhara Mal Adda (equivalent our District Treasury) petitioned the Ambassador that they had not received their pensions for the last two years. The Military Attaché was tasked to set up a temporary camp at Pokhara so that these ex-servicemen could get their dues. Thus, the concept of pension payment camps in the interior areas came into being as it ensured timely payment of pension near the homes of the pensioner saving him money and time. 2. Pension Camps. Initially, temporary pension camps were established at Pokhara in 1955 and Dhankuta in 1959.These were converted into permanent pension paying offices in 1960.The Dhankuta camp that shifted to Dharan in 1968 has finally been relocated in a new office complex, which was inaugurated by the Ambassador of India. Presently the Embassy conducts 32 Seasonal Pension Paying Camps annually, in the interiors of Nepal, for the convenience of ex-servicemen.Some of these camps are in remote areas, which entail travel by trek for days especially in the Eastern sector. 3.Pension is distributed to all ex-servicemen their widows and children of ex-servicemen. The Military Pension Branch of the Embassy of India is responsible for payment of pension and other dues to the Nepalese ex-servicemen and their families residing in Nepal. The Military Pension Branch alongwith its offices at Pokhara and Dharan are today catering for more than one lac eight thousand Defence and Civil Pensioners who have opted to draw their pensions in Nepal. Apart from pension payment our offices during these camps ensure that all requirements of the pensions in terms of Medical, Educational Scholarships, Army Group Insurance claims etc are all dealt under the concept of single window service thereby obviating the need for the pensioners to report at different places. 4. We have in the last five years disbursed the following amounts as pension :- (a) 1994-95 - Rs 175 crore IC (b) 1995-96 - Rs 199 crore IC (c) 1996-97 - Rs 249.5 crore IC (d) 1997-98 - Rs 206.07 crore IC (e) 1998-99 - Rs 297 crore IC (f) 1999-2000 - Rs 370.6 crores IC Indo
- Nepal Cooperation in the Education Field Government of India Regulated Schemes in Education All the courses offered by any University or Institution in India is open to Nepalese scholars under the foreign students category. While for some general courses like BA, BSc, etc., the students can approach the University directly, for some other professional like MBBS, BE, etc., the scholar has to approach the Embassy of India and complete required formalities. Government of India, through its various schemes, offers a large number of scholarships to meritorious Nepalese students (brief details and schedule given below). For
General Courses such as Bachelor’s and Master’s Degree
in Arts, Pure Science, Commerce, Education and Law Nepalese
students can approach Foreign Students Advisor of any Indian University
for admission provided 12 years of schooling (for Bachelor’s
level courses) have been completed successfully. No clearance from
Government of India is required. Nepalese students also do not require
a students’ visa. For
MCA, MBA, Hotel Management and other professional courses; MPhil
/PhD in any subject Nepalese
students can approach the concerned University / Institution directly
subject to obtaining ‘No Objection Certificate”
from Government of India. For obtaining NOC, the student may apply
in the format available at the Education Wing of the Indian
Embassy. For MBBS, BDS, BE, BPharma, Agriculture and Veterinary Science Courses, Diploma in Engg. All
Nepalese students should send their applications to Education Wing
of the Embassy of India as per Notification issued in local newspapers
from time to time. Approximate schedule is enclosed. Eligibility
is 60 % marks in aggregate in plus two and 60% in PCM or PCB, depending
on the course opted. Post Graduate Courses in MedicineAdmission
to post graduate courses in medicine at All India Institute
of Medical Science, New Delhi and the Post Graduate Institute
of Medical Education and Research, Chandigarh through a written
competitive examination twice a year. A No Objection Certificate
from Government of India is necessary to enable the candidates
to appear in the competitive examination, for which Nepalese nationals
may consult Embassy of India for necessary guidance and advice. Post
Graduate Courses in Engineering/ Technology Admission
to Post Graduate courses in Engineering and Technology available
only after Nepalese nationals have passed “Graduate Aptitude
Test in Engineering”(GATE), conducted annually by Indian
Institutes of Technology at different centres in India.
A No Objection Certificate from Government of India is necessary
to enable the candidates to appear in the competitive examination,
for which Nepalese nationals may consult Embassy of India for
necessary guidance and advice. 2000-2001 Academic Session
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