The Indian government has recently started the ex-servicemen Contributory Health Scheme (ECHS) to provide cashless medical treatment at all major hospitals in Nepal that are empanelled under the scheme.
Families of Gorkha Army personnel will also be entitled to receive medical service.
In case the ex-servicemen and their kin cannot be treated at Manipal, they will be referred to India, where they will be treated for free, The Himalayan Times reported.
The agreement - effective for two years initial - was signed in the presence of Indian Ambassador to Nepal Ranjit Rae yesterday.
Ambassador Rae also inspected some of the facilities at the hospital and assured the Indian ex-servicemen of all the support from government of India for their welfare.