Modi's Nepal visit sparks hopes; work on Pancheshwar dam to start soon

Kathmandu, a partner in the project, had not shown interest in building the dam apparently due to Naxalite activities in the vicinity

Prime Minister Narendra Modi's visit to Nepal has ignited hopes that the construction of the 6,600-Mw Pancheshwar multi-purpose hydel project on river Kali would be undertaken.

Uttarakhand Chief Minister Harish Rawat welcomed the talks between Modi and the Nepalese leadership on the Pancheshwar dam. He said he hoped the construction of the project would start soon.

Modi and his Nepalese counterpart Sushil Koirala had inked three pacts, which included restarting the Pancheshwar multipurpose project. The project was planned as a joint venture with Kathmandu. Rawat acknowledged that there was a perceptible change in the perception of the Nepalese leadership on the Pancheshwar dam now. During the past few years, Nepal had not shown any interest in building the dam, apparently due to Naxalite activities.

The Uttarakhand government had in 2012 approved the proposed project. The state was to get 13 per cent of power free from the project.

A few years ago, the Centre had decided to set up a Pancheshwar development authority for the implementation of the project, estimated to cost Rs 15,000 crore-Rs 20,000 crore. But no significant progress was made. This was the first time discussions on the project have taken place at the highest level.

The cabinet approval for the Pancheshwar dam had come at a time when the need was being felt to increase the hydropower potential in the state after the suspension of scores of hydroelectric projects on the Ganga and its tributaries.

The Kali divides Nepal and India at Pithoragarh and Champawat districts. The project was proposed in two parts - the 5,600-Mw Pacheshwar dam and the 1,060-Mw Purnagiri re-regulating irrigation project. A submergence area of 76 sq km falls on the Indian side. A total of 61 villages would be submerged, said a government official privy to the development. The chief minister also asked the Centre to prepare a Pancheshwar dam rehabilitation policy.