Kathmandu, 1 September 1971RAJESHWAR PRASAD, IAS
Director
INDIAN COOPERATION MISSION, Nepal
Kathmandu, 1st September 1971
Dear Shri THAPA,
I have the honour to acknowledge your letter of even date which reads as follows :
“The Agreement between His Majesty's Government and the Government of India for the construction of the Chatra Canal was in force
upto March 31, 1962. While a substantial portion of the work take up under this Agreement has been completed, it is understood that
some works remain to be completed beyond that date. The completion of this work will cost about Rs. 618.87 lakhs I.C. His Majesty's
Government will be grateful if the Government of India agree to continue their assurance to His Majesty's Government for the completion
of the project and make available the necessary funds from the overall aid funds to be made available to Napal during the period
April 1, 1966 to March 31, 1971. His Majesty's Government would be pleased to continue to extend all the facilities that were provided
for in the said Agreement for the completion of the Project.
2. I am to state that on the basis of the assurances given by His Majesty's Government, the Government of India agree to extend further
assistance not exceeding Rs. 618.87 lakhs I.C. to His Majesty's Government during the period April 1, 1966 to March 31, 1971, for
the completion of the Chatra Canal Project, already take up under India Aid to Nepal. The construction of the Project will be undertaken
as heretofore, by the River Valley Projects Department of the Government of Bihar.
3. I have the honour to confirm that the above correctly sets out the understanding reached between us. Your letter and my reply
thereto shall constitute an understanding between the Government of India and His Majesty's Government of Nepal which shall come
into force with effect from today’s date.
Please accept the assurances of my highest consideration.
Yours Sincerely,
Sd/-
RAJESHWAR PRASAD
Shri H.J. THAPA
Acting Secretary
Ministry of Finance
His Majesty's Government of Nepal
Singha Durbar
Kathmandu
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S. S. VARMA
Director
INDIAN COOPERATION MISSION, Nepal
Kathmandu
November 24, 1978
Dear Mr PANDEY,
I have the honour to acknowledge the receipt of your letter of even date which read as follows :
“An Agreement was signed between the Government of India and His Majesty's Government of Nepal on 2.11.1964 for the construction
of Chatra Canal at an estimated cost of Rs. 4 Crores IC. A further Letter of Exchange for an additional expenditure of Rs. 618.87
lakhs I.C. on the same project was signed on 1.9.1971. We are glad to know that except for a few residual works the project was
finally completed and handed over to His Majesty's Government of Nepal on 1.12.1975.
“It is understood that as per the latest revised estimates of the Project, the total expenditure on the project is likely to be Rs.
1440.41 lakhs I.C. The Government of India has also incurred an additional expenditure on the maintenance of the canals for the
period 1.1.1973 to 1.12.1975 and it is understood that as per the latest revised estimates the expenditure on this account is expected
to be Rs. 115.707 lakhs I.C.
“I am now to convey His Majesty's Government's request to the Government of India to provide to His Majesty's Government of Nepal
an amount of Rs. 21,25,000 I.C. for the construction of the few residual structures in canals at an estimated cost of Rs. 12,99,000
I.C. His Majesty's Government would be pleased to continue to extend for this purpose all the facilities that were provided in the
main agreement for the construction of the Chatra Canals.”
2. On the basis of the request and assurance contained in His Majesty's Government's letter as stated above, the Government of India
agree to make available funds to the extend of Rs. 21,25,000 I.C. for the construction of residual structures of the Chatra Canals
as specified in the Annexure to this letter which will also be deemed to form part of this Letter of Exchange. After completion
of the work which is expected to be completed by 31.3.1980, His Majesty's Government of Nepal will provide a utilisation certificate
for the amount released by the Government of India. The Govt. of India also further agree to undertake the construction of the telephone
line along the canal at an estimated cost of Rs. 12,99,000 I.C.
3. It is also confirmed that revised estimates of the costs of construction and maintenance of the Chatra Canals as mentioned in His
Majesty's Government's letter as stated above are correct.
4. I have the honour to state that your letter and my reply thereto shall constitute an Agreement between the Govt. of India and
His Majesty's Government of Nepal which shall come into force with effect from today.
5. Please accept the assurances of my highest consideration.
Yours Sincerely
Sd/-
S S VARMA
Director
Dr. D.R. PANDEY
Acting Secretary
Ministry of Finance
His Majesty's Govt. of Nepal
Kathmandu.
ANNEXURE
A. BUILDINGS
