Difference of opinion on draft details delays India-Nepal power trade agreement.

Neighboring Asian countries India and Nepal will soon be signing a power trade agreement (PTA). The deal was supposed to be locked during Prime Minister Narendra Modi’s recent visit to Kathmandu but has been delayed till some of the finer details of the deal are looked into and are agreeable to both the countries.

India-Nepal power trade agreement

The two countries have initiated the 5,600 MW Pancheshwar multipurpose project by signing three memorandums of understanding; one of which grants India the assistance of 69 million Nepalese Rupees to supply iodized salt to curb the high incidence of goiter in Nepal, the third deal ensures the cooperation between Doordarshan and Nepal Television.

The Nepalese Prime Minister of Foreign Affairs, Mahendra Bahadur Pandey, after his meeting with Narendra Modi said that the power trade agreement will be revised shortly. Pandey said, “It will take 45 days. I am very confident (it will go through).”

Reasons for delay in PTA

A day prior to Modi’s visit to Nepal, there were questions raised by Nepalese water resource experts regarding one of the provisions of the PTA draft, fearing monopolization of the power projects by the Indian government and firms. However, those claims were put to rest by the Nepalese government.

The 5,600 MW multipurpose project is slated to be developed on the Mahakali river, which borders both India and Nepal.


Photo Credits: Business Standard