Sunday, 20 July 2014

'Energy cooperation proposal not against Nepal's interest'

It is no secret that Nepal has a huge hydropower potential. But due to geographic location, Nepal has no other options than to join hands with our ever energy hungry neighbour, India. There has been lot of remarks regarding the “energy cooperation” from both countries. And the construction of various transmission lines to evacuate power to India shows that the two countries are serious about power trading.


However, a fresh proposal forwarded by India recently drew attentions of various political parties. And a lot of experts are saying that the Indian’s proposal do not protect the national interest. One of the major clauses that most of Nepalese experts and politicians disagree is:

 According to reports, the Indian proposal on 'Energy Cooperation' if accepted by Nepal will not only bar third countries from investing in Nepal's hydropower sector but Nepal itself will have to seek permission from India before harnessing its own water resources.

At times when the Indian proposal have been getting criticism, the Indian embassy in Nepal has clarified that India’s draft proposal for cooperation in the power sector between the two countries contains no conditions counterproductive for Nepal’s national interest of hydropower development. 

Issuing a statement containing 5-point clarification on Sunday, the embassy further informed that the proposal forwarded by India is merely a draft prepared for discussion.

“The proposal would require bilateral negotiations prior to finalization,” said the statement adding, “Both sides are free to propose amendments or modifications to the draft.”

According to the embassy, the draft is in the nature of a framework agreement that outlines the broad principles and parameters for overall cooperation in the power sectors including trading, transmission lines development and grid connectivity and construction of power projects. 

The embassy further stated power project to be developed would require a separate project implementation agreement and power purchase agreement, terms and conditions of which would need to be agreed. 

The opposition parties in Nepal have objected the draft claiming that some of the provisions included in the Indian proposal are against Nepal’s national interest.

No comments:

Post a Comment