India today extended a financial aid of Rs 99 million to Nepal for the construction of 2,700 shallow tube well irrigation systems in 12 districts of the country's southern Terai region to boost agricultural productivity.

The assistance has been extended as part of the final payment for the Nepal-Bharat Maitri Irrigation Project, which was launched in January last year to boost growth to the Himalayan nation's agricultural sector through enhanced facilities.

India's Ambassador to Nepal, Manjeev Singh Puri, handed over a cheque of 99.21 million Nepalese Rs (Indian Rs 61.93 million) to the country's Energy Secretary, Sanjay Sharma, at a function here, according to a press release issued by the Indian Embassy, Kathmandu.

The project aimed at installing 2,700 shallow tube wells in Saptari, Sarlahi, Rautahat, Bara, Parsa, Chitwan, Nawalparasi, Rupendehi, Kapilvastu, Dang, Kailali and Kanchanpur districts.

With today's aid, Indian has so far released a total of 227.6 million Nepalese rupees to Kathmandu for implementing the project, according to the release.

The project would ensure all-season irrigation facility to about 8,115 hectares of farmland, augment productivity of wheat, rice and seasonal fruits, vegetables and other crops, it said.

It would also uplift the socio-economic status of farming families in the 12 districts covered under the project, it added.

Recognising the scope for improving agricultural productivity in Nepal, India has been partnering with Nepal for development of Deep Tube Wells (DTWs) and Shallow Tube Wells (STWs) in various regions for several years.