Indian government’s development projects in neighbouring countries

Why in news?

In the union budget fy25 the bulk of the allocation for the ministry of finance goes to the development projects in neighbouring countries mainly Nepal, Sri Lanka and Seychelles.

India’s development projects in Nepal:

Power Export Agreement: India and Nepal signed a bilateral agreement for the export of 10,000 MW of power in the next 10 years.

Cross-Border Transmission Lines Inauguration: Three cross-border transmission lines were jointly inaugurated including the 132 kV Raxaul-Parwanipur, 132 kV Kushaha-Kataiya, and New Nautanwa-Mainahiya lines.

Renewable Energy Cooperation: A Memorandum of Understanding (MoU) was signed between the Nepal Electricity Authority and India's National Thermal Power Corporation Limited for cooperation in renewable energy.

Agreement for Satellite Service : The Service Agreement for Munal Satellite developed by Nepal Academy of Science and Technology between Nepal Academy of Science and Technology and NewSpace India Limited was launched.

This satellite developed by Nepali students shall be launched on a gratis basis on an Indian launch rocket.

India is involved in the development of several hydropower projects in Nepal, including the Arun III, Arun-4, Upper Karnali, Seti River 6, and West Seti projects. Long-term power trade agreements have been signed, aiming to import 10,000 MW of electricity from Nepal to India over the next 10 years

Infrastructure projects: Both countries are working on infrastructure projects to improve connectivity. Recently, India Prime Minister and his Nepalese counterpart remotely unveiled the Kurtha-Bijalpura section of the railway line, virtually flagged off a cargo train from Bathnaha (India) to Nepal Customs Yard and inaugurated Integrated Checkposts (ICPs) at Nepalgunj in Nepal and Rupaidiha on the Indian side

India’s development projects in Sri Lanka:

Infrastructure development

In 2022, India signed an agreement to set up hybrid power projects on northern Sri Lanka islands.

Various development projects have been started by India at Kankesanthurai port on the northern tip of Sri Lanka, very close to India, and at Trincomalee port on its north eastern coast.

Indian Housing Project

With an initial commitment to build 50,000 houses in war affected areas and estate workers in the plantation areas, is Government of India (GoI)’s flagship grant project in Sri Lanka. India announced that an additional 10,000 houses would be constructed in plantation areas.

There are also four smaller housing programmes for constructing 2400 houses across Sri Lanka. Overall, India has so far committed to construct close to 62,500 houses in Sri Lanka.

India’s development projects in Seychelles:

India has provided generous assistance to Seychelles. This includes training programs under the ITEC program, financial aid, and material assistance.

Development projects such as the Pan-African satellite tele-medicine system and the IT Centre for Excellence have been established with Indian assistance.

In 2022 The High Commission of India and the Ministry of Foreign Affairs and Tourism signed 2 Memorandums of Understanding (MoUs) pertaining to 3 High Impact Community Development Projects (HICDPs) on Mahe Island. The projects will be undertaken through grant provided to the Government of Seychelles by the Government of India.