Agreement Between His Majesty's
Government of Nepal and the Government of India on the Gandak
Irrigation & Power Project
Kathmandu, 4 December 1959
WHEREAS His Majesty's Government of Nepal
and the Government of India consider that it is in the common
interests of both Nepal and India to construct a barrage,
canal head regulators and other appurtenant works about
1000 feet below the existing Tribeni canal head regulator
and of taking out canal systems for purposes of irrigation
and development of power for Nepal and India (hereinafter
referred to as "the project").
AND WHEREAS in view of the common benefits,
His Majesty's Government have agreed to the construction
of the said barrage, canal head regulators and other connected
works as shown in the Plan annexed to this Agreement to
the extent that they lie within the territory of Nepal,
by and at the cost of the Government of India.
NOW THE PARTIES AGREE AS FOLLOWS
1. Investigation and Surveys :
His Majesty's Government authorise the
Project Officers and other persons acting under the general
or special orders of such officers to move in the area indicated
in the said Plan with men, material and equipment as may
be required for the surveys and investigations in connection
with the Project, before, during and after construction,
as may be found necessary from time to time. These surveys
include ground, aerial, hydraulic, hydrometric, hydrological
and geological surveys; investigations for communication
and for the alignment of canals and for materials required
for the construction and maintenance of the Project.
2. Authority for the execution of works
and their maintenance :
(i) His Majesty's Government authorise
the Government of India to proceed with the execution of
the Project and for this purpose His Majesty's Government
shall acquire all such lands as the Government of India
may require and will permit the access to, the movement
within and the residence in the area indicated in the Plan
of officers and field staff with labour force, draught animals,
vehicles, plants, machinery, equipment and instruments as
may be necessary for the execution of the Project and for
its operation and maintenance after its completion.
(ii) In case of any apprehended danger
or accident to any of the structures, the officers of the
Government of India will execute all works which may be
necessary for repairing the existing works or preventing
such accidents and/or danger in the areas indicated in the
Plan. If any of such works have to be constructed on lands
which do not belong to the Government of India, His Majesty's
Government will authorise these works to be executed and
acquire such additional lands as may be necessary for the
purpose. In all such cases the Government of India shall
pay reasonable compensation for the lands so acquired as
well as for damage, if any, arising out of the execution
of these works.
3. Land Acquisition :
(i) His Majesty's Government will acquire
or requisition, as the case may be, all such lands as are
required by the Government of India for the Project, i.e.
for the purpose of investigation, construction and maintenance
of the Project and the Government of India shall pay reasonable
compensation for such lands acquired or requisitioned.
(ii) His Majesty's Government shall transfer
to the Government of India such lands belonging to His Majesty's
Government as are required for the purposes of the Project
on payment of reasonable compensation by the Government
(iii) Lands requisitioned under para (i)
shall be held by the Government of India for the duration
of the requisition; and lands acquired under sub-clause
(i) or transferred under sub-clause (ii) shall vest in the
Government of India as proprietor and subject to payment
of land revenue (Malpot) at the rates at which it is leviable
on agricultural lands in the neighbourhood.
(iv) When such land vesting in the Government
of India or any part thereof ceases to be required by the
Government of India for the purposes of the Project, the
Government of India will reconvey the same to His Majesty's
Government free of charge.
His Majesty's Government shall permit
the Government of India on payment of reasonable royalty
to quarry materials such as block stones, boulders, shingle
and sand required for the construction and maintenance of
the Project from the areas indicated in the said Plan.
(i), His Majesty's Government shall allow
the Government of India to construct and maintain such portion
of the main Western Canal which falls in the Nepal territory
and to construct and maintain communications for the construction
and maintenance of the: Project. Theroads will be essentially
departmental roads of the Project and their use by commercial
and non-commercial vehicles of Nepal will be regulated as.mutually
agreed upon between His Majesty's Government and the Government
(ii) The bridge over the Gandak Barrage
will be open to public traffic, but the Government of India
shall have the right to close the traffic over the bridge
for repair, etc.
(iii) The Government of India agree to
provide locking arrangements for facility of riverine traffic
across the Barrage free from payment of any tolls whatever,
provided that this traffic will be regulated by the Project
staff in accordance with the rules mutually agreed upon
between His Majesty's Government and the Government of India.
(iv) His Majesty's Government agree to
permit installations of telegraph, telephone, and radio
communications as approximately indicated in the Plan for
the bonafide purpose of the construction, maintenance and
operation of the Project.
(v) The Government of India shall permit
the use of internal telegraph, telephone and radio communications
as indicated in the Plan to the authorised servants of His
Majesty's Government in emergencies, provided such use does
not interfere with the construction, maintenance and operation
of the Project.
6. Ownership, Operation and Maintenance
of Works :
Subject to the provisions of sub-clause
(v) of clause 7, all works connected with the Project in
the territory of Nepal will remain the property of and be
operated and maintained by the Government of India.
7. Irrigation for Nepal
(i) The Government of India shall construct
at their own cost the Western Nepal Canal including the
distributory system thereof down to a minimum discharge
of 20 cusecs for providing flow irrigation in the gross
commanded area estimated to be about 40,000 acres.
(ii) The Government of India shall construct
the Eastern Nepal Canal from the tall end of the Don Branch
Canal upto river Bagmati including the distributory system
down to a minimum discharge of 20 cusecs at their own cost
for providing flow irrigation in Nepal for the gross commanded
area estimated to be 1,03,500 acres.
(iii) His Majesty's Government shall be
responsible for the construction of channels below 20 cusecs
capacity for irrigation in Nepal but the Government of India
shall contribute such sum of money as they may consider
reasonable to meet the cost of construction.
(iv) The Nepal Eastern Canal and the Nepal
Western Canal shall be completed, as far as possible, within
one year of the completion of the barrage.
(v) The canal systems including the service
roads situated in Nepal territory except the Main Western
Canal, shall be handed over to His Majesty's Government
for operation and maintenance at their cost.
8. Power development and reservation
(1) The Government of India agree to construct
one Power House with an installed capacity of 15,000 KW
in the Nepal territory on the Main Western Canal.
(ii) The Government of India also agree
to construct a transmission line from the Power House in
Nepal to the Bihar border near Bhaisalotan and from Sagaull
to Raxaul in Bihar in order to facilitate supply of power
on any point in the Bihar Grid upto and including Raxaul.
(iii) The Government of India shall supply
power to His Majesty's Government at the Power House and/or
at any point in the Grid upto and including Raxaul to an
aggregate maximum of 10,000 KW upto 60% load factor at power
factor not below 0.85. The charges for supply at the Power
House shall be the actual cost of production, and on any
point on the Grid upto Raxaul it shall be the cost production
plus the cost of transmission on such terms and conditions
as may be mutually agreed upon.
(iv) His Majesty's Government will be
responsible for the construction at their own cost of the
transmission and distribution system for supply of power
within Nepal from the Power House or from any point on the
Grid upto and including Raxaul.
(v) The ownership and management of the
Power House shall be transferred to His Majesty's Government
on one year's notice in writing given by them to the Government
of India after the full load of 10,000 KW at 60% load factor
has been developed in Nepal from this Power House.
(vi) The ownership of the transmission
system constructed by the Government of India at its cost
shall remain vested in the Government of India, but, on
transfer of the Power House', the Government of India -shall
continue the arrangements for transmission of power, if
so desired by His Majesty's Government, on payment of the
cost of transmission. Provided that His Majesty's Government
shall have the right to purchase the transmission system
from the Power House to Bhaisalotan situated in the Nepal
territory on payment of the original cost minus depreciation.
(vii) The Government of India shall be
free to regulate the flow into or close the Main Western
Canal Head Regulator temporarily, if such works are found
to be necessary in the interest of the efficient maintenance
and operation of the Canal or the Power House, provided
that in such situations the Government of India agree to
supply the minimum essential power from the Bihar Grid to
the extent possible on such terms and conditions as may
be mutually agreed upon.
9. Protection of Nepal's Riparian Rights
His Majesty's Government will continue
to have the right to withdraw for irrigation or any other
purpose from the river or its tributaries in Nepal such
supplies of water as may be required by them from time to
time and His Majesty's Government agree that they shall
not exercise this right in such manner as is likely, in
the opinion of the parties hereto, prejudicially to affect
the water requirements of the Project as set out in the
schedule annexed hereto.
10. Prorata reduction of supplies during
period of shortage
Whenever the supply of water available
for irrigation falls short of the requirements of the total
area under the Project for which irrigation has to be provided
the shortage shall be shared on prorata basis between the
Government of India and His Majesty's Government.
11. Sovereignty and Jurisdiction
Nothing in this Agreement shall be deemed
to derogate from the sovereignty and territorial jurisdiction
of His Majesty's Government in respect of lands acquired
by His Majesty's Government and made available to the Government
of India for investigation, execution and maintenance of
12. Arbitration :
(1) Any dispute or difference arising
out of or in any way touching or concerning the construction,
effect or meaning of this Agreement, or of any matter contained
herein or the respective rights and liabilities of the parties
hereunder, if not settled by discussion, shall be determined
in accordance with the provisions of this clause.
(2) Any of the parties may by notice in
writing inform the other party of its intention to refer
to arbitration any such dispute or difference mentioned
in sub-clause (1); and within 90 days of the delivery of
such notice, each of the two parties shall nominate an arbitrator
for jointly determining such dispute or difference and the
award of the arbitrators shall be binding on the parties.
(3) In case the arbitrators are unable
to agree, the parties hereto may consult each other and
appoint an Umpire whose award shall be final and binding
13. This Agreement will come into force
with effect from the date of signatures of the authorised
representatives of His Majesty's Government and the Government
of India respectively.
IN WITNESS WHEREOF the undersigned being
duly authorised thereof by their respective Governments
have signed the present AGREEMENT in Nepali, Hindi and English
in duplicate, all three texts being equally authentic, at
Kathmandu this 19th day of Marg Sambat 2016 corresponding
to December 4, 1959. For purposes of interpretation the
English text shall be used.
For the Government of India On behalf
of For and on behalf of the His Majesty's Government President
of India of Nepal
(Sd.) Ambassador of India.
Deputy Prime Minister.
For His Majesty's Government of Nepal
For The Government of India
EMBASSY OF INDIA, NEPAL, KATHMANDU
Dated December 4, 1959
My Dear BHAGWAN SAHAY,
There are a few matters pertaining to
the Gandak Irrigation and Power Project Agreement in respect
of which certain understandings are necessary. They are
detailed below :
(a) Sub-clauses (i) and (ii) of Clause
3 lay down that the Government of India shall pay reasonable
compensation for acquisition or requisition of any lands
which may be required for the Project. It is agreed that
for purposes of fixation of rates of compensation His Majesty's
Government would appoint an Expert Committee with which
Revenue Officers of the Gandak Project would also be associated.
The Committee will visit the area of the Project and fix
the principles for assessment of compensation payable for
such lands. The total compensation payable for the lands
acquired or requisitioned will be calculated on the basis
of the agreed rates fixed by the Committee. The Government
of India shall deposit the agreed amount of compensation
to the credit of His Majesty's Government in the Rashtra
Bank. Thereupon His Majesty's Government will make the required
arrangements for payment of compensation to those persons
to whom it may be due.
(b) Clause 4 provides that His Majesty's
Government will grant permission to the Government of India
for the quarrying of materials required for the construction
and the maintenance of the Project in the areas shown in
the Plan annexed to the Agreement. It is our understanding
that if suitable materials are not available from these
areas in sufficient quantities His Majesty's Government
will permit on the request of the Government of India quarrying
in such other areas as may be mutually agreed upon.
(c) Sub-clause (ii) of Clause 7 of the
Agreement states that under the Eastern Nepal Canal the
gross commanded area will be 1,03,500 acres. It may be explained
that this gross commanded area will be possible only on
the execution of the training works on the river Bagmati
for which certain proposals have already been under discussion
with His Majesty's Government. The river has been taking
a westward course and certain training works are required
to be set up in order to divert it back into its old eastern
channel to flow under the Bagmati Railway Bridge. Without
the river training scheme the gross commanded area will
not exceed 93,000 acres.
(d) Sub-clause (iii) of Clause 7 of the
Agreement refers to a contribution by the Government of
India of a sum which they c.nsider reasonable towards the
cost of construction of channels below 20 cusecs capacity
for irrigation in Nepal. It is our understanding that such
contribution would not cover any cost of land acquisition
for the channels but would be related only to the actual
expenditure on works. As regards the latter it is estimated
that a sum of Rs. fifteen lakhs will be sufficient and accordingly
the Government of India will make this sum available to
His Majesty's Government in suitable instalments according
to the progress of construction.
(e) Sub-clause (v) of Clause 8 provides
that the ownership and management of the power house shall
be transferred to His
for a period of fifteen years after obtaining
the ownership and management of the power house His Majesty's
Government would be generating secondary Power to the full
extent possible and supplying it to the Government of India
on payment of its actual cost of production.
(f) The schedule annexed to clause 9 gives
the minimum quantities of water required for the Project
after making the allowance for the withdrawal of water from
the upper reaches of the Gandak river and its tributaries
sufficient for the irrigation of two lakh acres which is
the maximum area estimated to be available for the purpose.
it is our understanding that if at any time, due to natural
causes the supplies in the river are insufficient for all
the purposes His Majesty's Government will be entitled to
continue to withdraw water sufficient for the irrigation
of such area.
December 4, 1959
My Dear BHAGWAN SAHAY,
I acknowledge the receipt of your letter
of December 4, 1959, regarding the Gandak Irrigation and
Power Project which is as follows:
We confirm the understandings as indicated
in your letter.
(Sd.) SUHARANA SHUMSHERE
His Excellency Shri BHAGWAN SAHAY,
Ambassador of India, Kathmandu.
Bilateral Treaties & Agreements (Volume 3)