Embassy of India, Kathmandu, Nepal

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Indian Assistance of NRs. 44.44 million for construction of Cold Storage Building in Palpa District

October 18, 2012


A Memorandum of Understanding (MoU) was signed on 18th October 2012 between the Embassy of India, Kathmandu and Tansen Municipality, Palpa for providing Indian grant assistance of NRs. 44.44 million for the construction of a Cold Storage Building and supply of machinery and equipment under the Nepal-India Economic Cooperation Programme.  This is the fifth development project in the Palpa District being undertaken with the Indian assistance under the Small Development Projects.

Due to lack of proper storage facility, the farmers of the District, who are mainly dependent on agriculture for their livelihood, suffer from the problem of proper handling and storage of their perishable produce. As a result, either they have to suffer avoidable financial losses or they are not able to sell their produce at reasonable prices in the market.  The proposed cold storage building with a capacity of 200 MT, being constructed with Indian financial assistance, will enable the farmers and small entrepreneurs of the District to get better prices for their produce, which, in turn would enhance their income levels and bring about a significant improvement in the standard of living of their families.

The project will be implemented by the Tansen Municipality, Palpa in accordance with the existing norms and regulations of the Government of Nepal. They will also be responsible for ensuring the quality of construction of the project and its timely completion. The MoU stipulates the constitution of an Oversight Committee, comprising of representatives of the Municipality and other stakeholders with a view to ensuring the implementation of the project in a time bound manner. 

In addition to this project, two projects in Palpa District have already been completed with Indian assistance of NRs. 25.3 million. Further, work is ongoing for another two projects at a cost of NRs.  52.8 million. India has also gifted six ambulances and one school bus in Palpa District. 

Recognizing the importance of accelerating growth in Nepal, India remains committed to rendering all possible assistance in that direction. The India – Nepal Economic Programme has an outlay of over NRs. 64 billion with more than 425 large and small development projects completed or currently being implemented in almost all the districts of Nepal. These development projects mainly in the sectors of education, health and infrastructure development have been undertaken in response to local needs, and in partnership with the Government of Nepal.

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