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India planning to lend financial support to Nepal in its Rail Budget
(Jan 16, 2008)
India has decided to provide financial assistance to Nepal for enhancing its technical and social infrastructure. As per the press release delivered by the Indian foreign ministry, the Indian government has reserved Rs 1.38 billion under its outgoing budget for the financial year 2008-2009 to materialize this purpose.

The budget for this plan was kept as Rs 88 crores in the last financial year. This modified plan was decided upon during Prime Minister Girija Prasad Koirala's visit to India last year. Apart from this, it was also decided that Indian government would enhance its financial support for the extension of 650-km roads network in the Terai, rail connectivity to five major towns of Nepal and an integrated checkpost in Raxaul of India.

As per the outgoing budget scheme, India has agreed upon spending Rs 38 crores under plan heads and Rs 100 crores under non-plan heads for the enhancement of technical and social infrastructure in Nepal. Projects concerning the welfare of health, education, women and children will be in operation under these heads. These projects will be handled by local government and non-government organizations. Building of roads and bridges would also be covered under this plan.