India's clarification comes in the wake of protests by the opposition parties Unified Communist Party of Nepal (Maoist) and CPN-Maoist over the reported draft proposal submitted to Nepal on the hydropower development.
"The draft proposal in no way constrains Nepal's sovereign authority for the development of its hydropower sector in the country," a statement issued by the Indian embassy said.
The proposal forwarded by India is merely a draft prepared for discussion, it added.
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, grid connectivity and construction of power projects.
"The 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 upon," the statement said.
The opposition parties in Nepal have raised objection to the draft claiming that some of the provisions included in the Indian proposal go against Nepal's national interest.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
