{"id":1061,"date":"2023-04-12T00:00:00","date_gmt":"2023-04-12T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/12-04-2023\/india-in-nepals-hydropower\/"},"modified":"2023-04-12T00:00:00","modified_gmt":"2023-04-12T00:00:00","slug":"india-in-nepals-hydropower","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-04-2023\/india-in-nepals-hydropower","title":{"rendered":"India in Nepal\u2019s Hydropower"},"content":{"rendered":"<p><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong><u>In News<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Nepal is now at the cusp of realising a long-awaited dream of development through its hydropower resources.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong><u>India in Nepal\u2019s hydropower\u00a0<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Post-independence:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Historically, India has shied away from the development of Nepal\u2019s hydropower resources.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Delhi has few legacy projects in the sector, instead choosing to prioritise other infrastructure sectors in Nepal.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Current scenario:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">A careful reading of India\u2019s Nepal policy in the past few years suggests that Delhi has quietly taken the lead in Nepal with its push for connectivity, especially in hydropower development and trade.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>List of hydropower Projects:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Arun III project:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">The 900 MW <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Arun III project <\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">is being developed by a subsidiary of<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> Satluj Jal Vidyut Nigam (SJVN)<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">, is moving ahead at a quick pace,<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Seti project:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Nepal has signed an agreement with NHPC Limited to develop both the 750 MW West <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Seti project<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">, from which China\u2019s Three Gorges Corporation had pulled out citing it was financially not viable, and the additional 450 MW Seti River 6 project on the same river.\u00a0<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Upper Karnali project:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">The Indian corporate GMR group has been given the licence to develop the 900 MW <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Upper Karnali project.<\/strong><\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">However, the project has run into trouble with the company being unable to achieve financial closure within the stipulated deadline.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Phukot Karnali project, Tamor River project:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Two of the hydro projects listed under possible <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>BRI ventures<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> inside Nepal\u2014the<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> 480 MW Phukot Karnali project <\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">and the<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> 756 MW Tamor River storage-type project<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">\u2014have been awarded to NHPC and SJVN respectively.\u00a0<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Cross-border transmission lines:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Several <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>cross-border transmission lines<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> are in the works, with the capacity of the <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Dhalkebar-Muzaffarpur transmission line<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> agreed to be expanded to 800 MW from the current 600 MW<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">An agreement has been signed towards the export of Nepali power using transmission lines in Bihar at a fixed rate of INR 7.21 per unit.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Nepal\u2019s Power export to India:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">The most exciting development\u2014one that could realise Nepal\u2019s much-awaited hydropower potential\u2014has been the <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>export of NPR 11 billion (INR 6.8 billion) worth of power to India<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> between June and December 2022.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Nepal is <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>currently allowed to sell 452.6 MW<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> generated from 10 projects in the Indian day-ahead electricity market.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Similarly, Nepali private power companies<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> may soon also be able to sell their power directly to Indian buyers<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong><u>Issues &#038; challenges<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>ISTS charges:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">There are worries that <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>India\u2019s decision to waive off Inter-State Transmission System (ISTS) charges<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> to its domestic projects will make Nepali power exports less competitive, and Kathmandu will be seeking a similar waiver on its power exports as well.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>India-China issue:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">The reverberations of the India-China contest have been felt in Nepal, with <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>India blocking access to its markets<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> for<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> infrastructure projects developed or funded by China<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">This has created a great degree of anxiety among Nepali private sector power developers who are looking towards India as the potential export market.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Locking market access may create a disincentive for Nepal to not look towards China, but the policy has also allowed China to access Nepali markets that were previously restricted to it.\u00a0<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Projects involving Chinese contractors:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">India\u2019s move has also been extended to projects where both Indian and Chinese contractors have been involved, such as the<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> 456 MW Upper Tamakoshi project<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">, as well as to <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>projects funded by multilateral institutions such as the ADB<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> like the <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Gautam Buddha International Airport<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> in Bhairahawa, which was built by a Chinese contractor.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong><u>Suggestions<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Export of Nepali power to Bangladesh:<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">India\u2019s regional connectivity push will get additional momentum if it expedites the <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>export of Nepali power to Bangladesh <\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">using <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Indian transmission lines<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Both Kathmandu and Dhaka are highly positive about the proposal which, after Delhi\u2019s go-ahead, will be one of the few instances globally of trilateral power cooperation.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">This will provide a <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>boost to larger BBIN connectivity<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> and <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>India\u2019s G20 aspirations<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">, as well as provide momentum to the recent joint vision statement on power sector cooperation between Nepal and India.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>Bilateral UPI payment interface<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">:<\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Expediting moves such as a bilateral UPI payment interface, which are at an incipient stage at the moment, will boost this connectivity drive.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong><u>Way ahead<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Regional connectivity has long been a mirage in South Asia, but<\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong> developments over the past few years<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> have raised hopes that it can finally be achieved in the <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>culturally similar but economically disconnected region<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">The key will be <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>India\u2019s assurance to its neighbors<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> that Delhi is committed to realising its <\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"><strong>vision for the global South in the G20 presidency<\/strong><\/span><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\"> and taking the connectivity projects in South Asia one step further.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:12pt\"><span style=\"font-family:Arial\"><span style=\"color:#000000\">Source: <\/span><\/span><\/span><a href=\"https:\/\/www.orfonline.org\/expert-speak\/indias-quiet-lead-in-nepals-power-dreams\/\" style=\"text-decoration:none\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size:12pt\"><span style=\"font-family:Arial\"><span style=\"color:#1155cc\"><u>ORF<\/u><\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Nepal is now at the cusp of realising a long-awaited dream of development through its hydropower resources. India in Nepal\u2019s hydropower\u00a0 Post-independence: Historically, India has shied away from the development of Nepal\u2019s hydropower resources.\u00a0 Delhi has few legacy projects in the sector, instead choosing to prioritise other infrastructure sectors in Nepal. Current scenario: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[30,34,35],"class_list":["post-1061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-gs-2","tag-india-foreign-relations","tag-international-organisations-groupings"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/4972700Screenshot_6.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/1061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=1061"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/1061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/1062"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=1061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=1061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=1061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}