Given that the downstream benefits in the form of a contract between Nepal and India were formally recognized for the first time in a storage project in Pancheshwar, if an agreement could be developed and the project implemented, this would create a very good precedent that would be useful in the future for many other storage projects such as Karnali Chisapani , Koshi High Dam, etc. a) The DPR is concluded by both countries within six (6) months of the treaty`s entry into force. To this end, the necessary data and reports are exchanged quickly. In assessing the benefits of the project during the preparation of the RPD, the net electricity benefit is assessed, among other things, on the basis of cost savings for beneficiaries compared to the relevant alternatives available. The benefits of irrigation are assessed on the basis of additional and additional benefits resulting from the increase in the river and flood protection based on the value of the damage saved and avoided. (d) In order to expedite the implementation of the project, field investigations and detailed design, including the preparation of tender documents, begin immediately after the close of the DPR and take place in parallel with negotiations on the project implementation agreement. To this end, the two countries agree on a separate funding agreement for these activities. I am grateful that Your Excellency confirms to them that the above statement correctly establishes the agreement reached between our two governments. This letter, as well as Your Excellency`s reply confirming the agreement, constitute an agreement between our two governments, which will also come into force on the day of the exchange of ratification instruments between the parties, in accordance with Article 12, paragraph 2, of the Treaty. Knowing that the Mahakali River is a border river on large stretches between the two countries; In 1971, Nepal, with the help of the World Bank, launched a Mahakali irrigation project on the basis of the Sarada Agreement of 1920, with the help of the World Bank during the Panchayat period.  In 1977, India and Nepal agreed to study the Mahakalia resource.
 India appears to have a long-term strategy in its water resource relations with Nepal and is moving to control all of Nepal`s major rivers and to take into account projects when and when need is felt (Dhungel, 2009).