Kathmandu, 2 February 1973
The Government of INDIA, hereinafter called the ‘G.O.I.’
His Majesty's Government of Nepal, hereinafter called ‘H.M.G.’,
BEING desirous of co-operating with each other in controlling the incidence of Goitre in Nepal,
HAVE agreed as follows :
The G.O.I. agrees to make available funds to the extent of Rs. 50.00 lakhs (Rupees fifty lakhs only) in Indian Currency for the implementation
of the scheme for the supply of iodised salt in Nepal as mutually accepted, hereinafter called the "Programme" This amount shall
be allocated out of the aid funds approved for the "Additional Assistance to Nepal" and should be utilised before the 31st March
The G.O.I. further agree to set apart funds upto the extent of Rs. 75.00 lakhs (Rs. Seventy five lakhs) in Indian currency for the
continuation of the Programme during the period 1974-77. The precise quantum of Aid Funds to be provided by the Government of India
from year to year during the period 1974-77 for the implementation of the Programme shall be decided after reviewing the needs and
the operation of the Programme as stipulated under this Agreement.
The funds provided by GOI under this Agreement will be utilised :
(1) To meet the cost of the iodisation of salt, required for consumption in Nepal; and
(2) to subsidise the difference between the cost (including transportation by rail, road and air; packing, stamping and labelling
of bags and expenditure on salaries and allowances of liaison officer and staff employed specifically for distribution of iodised
salt in inaccessible areas) and the retail price of iodised salt not exceeding 50 paise per Mana or as may be mutually agreed upon.
(List of inaccessible areas is given in the Annexure).
The Programme shall be implemented by the Ministry of Health, H.M.G./Salt Trading Corporation Limited, Nepal. However, if at any
time during the continuance of this programme HMG wish to make alternative arrangements for the execution of the programme, they
shall consult the Director, Indian Cooperation Mission, hereinafter called “Director ICM”.
Whereas, generally, the funds provided under this Agreement shall be utilised in conformity with the provisions stipulated in Article
No. III above, these provisions could be substituted or altered by HMG in consultation with the Director ICM.
The Director ICM shall act as Adviser to the Ministry of Health HMG/Salt Trading Corporation Limited, Nepal, for the implementation
of the Programme. The Director ICM in his capacity as Adviser shall be invited to attend all the meetings held by HMG in connection
with the implementation of the Programme, and in his absence he may nominate any other Officer/Officers of ICM to attend the meetings
on his behalf. The Director ICM shall be consulted on the annual budget relating to this Programme, and the monthly progress reports
on the implementation of the Programme and expenditure statements shall be sent to HMG/Salt Trading Corporation Limited, Nepal to
the Director, ICM regularly.
Foreign exchange, if any, involved in the process of the iodisation of the salt will be provided by HMG against the allotment made
in terms of equivalent Indian currency.
The Procurement of iodised salt from sources/agencies in India will be the responsibility of HMG/Salt Trading Corporation Limited,
Nepal, but the Director ICM will, if necessary, render assistance in this respect.
In order to make the scheme a success, HMG will do their best to ensure that the entire quantity of salt to be supplied, traded or
distributed for consumption within Nepal is of the iodised quality only.
H.M.G. will fix or revise the market price of the iodised salt, procured under this Agreement, in consultation with the Director
H.M.G. will ensure that the iodised salt sold to the consumers within Nepal is packed in polythene bags of suitable sizes, and the
retail price of the iodised salt as fixed under the terms of this Agreement is stamped or printed on bags in the Nepalese language.
HMG shall ensure that the transportation of salt from the supply centres in Tarai, to the areas which are generally inaccessible
by road transport, is done through suitable types of aircraft owned and operated by Nepalese agencies.
HMG will appoint a suitable Liaison Officer to supervise and inspect the distribution of salt particularly in the hilly areas of
The Ministry of Finance HMG will make periodical requests to the ICM for advancing funds to meet the expenditure on items as provided
in Article III of the Agreement. ICM will release funds against these requests in favour of the Ministry of Finance, HMG. These
funds will be deposited in a separate account under the head “ICM-Iodised Salt Account” to be opened in Nepal Rastra Bank by HMG.
The special account will be operated by HMG’s Ministry of Finance under their budgetary rules and regulations and release of funds
will be made by them to the Department of Health Services Salt Trading Corporation Limited, Nepal. A quarterly statement of such
releases will be made available to the ICM.
ICM will release funds to HMG on a quarterly basis and accounts of the first quarter will be submitted before request for the third
quarterly release is made. Likewise, accounts will continue to be submitted. The Member (Finance and Accounts) of the ICM would
have access to all matters connected with Finance and Accounts of the Programme. He will also advise and assist HMG in the preparation
of annual budgets, inspection of Local accounts and release of funds to the concerned bodies for the implementation of this Programme.
Any expenditure incurred by GOI for the implementation of the Programme, before the signing of this Agreement, shall be debited to
the Aid made available under this Agreement.
Arrangements will be made to reflect the Indian assistance in the annual budgets of HMG.
All unspent balances and cash advanced by the GOI, after meeting the liabilities, shall be refunded to the GOI on completion or termination
of this Agreement or otherwise utilised in accordance with a separate agreement to be entered into for this purpose.
This Agreement shall come into force with effect from the date of signature and shall remain in force upto 31st March 1977 unless
terminated earlier by either party by giving three months notice in writing to the other party.
IN WITNESS WHEREOF, we, the undersigned, being duly authorised by our respective Governments, have signed the Agreement.
DONE at Kathmandu this 2nd day of February, one thousand nine hundred and seventy three in the English language in four original
copies, all of which are equally authentic,.
For His Majesty's
Government of India
Government of Nepal
B B PRADHAN
Indian Cooperation Mission