India has sanctioned a soft loan of 340 million US dollar to Nepal for various infrastructure development programmes. Under this programme Mahalaki bridge and 15 roads will be constructed in various parts of Nepal.
Completion of infrastructural projects will not only strengthen physical connectivity but also emotional bonding between the people of both the countries.
India is extending economic and technical support to Nepal, especially after 1951. 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 the socio-economic development of Nepal. Areas of economic relations mainly cover basic infrastructure such as airports, irrigation, agriculture, roads, bridges, power projects, industrial estates, communication, surveys, forestry, building construction, along with some vital social sector areas like health, education, human resource development etc.
A number of projects including improving physical facilities and infrastructure at important border customs stations and check-posts, pilot projects in rural and community development, small/medium hydro-power projects, milk and dairy development, establishment of Information Technology Institute etc. are under process.
The Raxaul-Birgunj Broad Gauge Rail Link Project has eased the trade of both countries. Setting up of an Emergency and Trauma Centre at the Bir Hospital and the Mahendranagar-Tanakpur Link Road Project are some other commitments made by India.
Similarly, a project presently on anvil for cross-border rail links at five locations at the Indo-Nepal border (Jalpaiguri-Kakarbhitta, Jogbani-Biratnagar, Jaynagar-Bardibas, Nautanwa-Bhairahwa, Nepalgunj Road-Nepalgunj) will significantly boost cross-border linkage and will be of immense value in promoting trade and commerce between the two countries.
