Indo-Nepal Pact May Provide Solution To Power Shortage
A power trade pact that Prime Minister I K Gujral is set to sign with Nepal during a three-day visit beginning June 5 could go a long way to bridging Indias growing power deficit.
Nepals abundant water resources make it the ideal producer of relatively cheap hydel power. Nepals industrial base being small, it suits it to sell much of its power generation to India. Nepal has the potential to produce 15,000-20,000 mw, around the total shortfall in Indias peak demand.
The problems for this sort of cooperation are in the seismic stability of potential sites for big dams and, conversely, in transmitting power that could be generated at several smaller dams.
The pact to be signed is essentially an enabling agreement, which will allow private companies to generate power in Nepal and sell it in India, Prabhat Shukla, joint secretary in the Prime Ministers Office, said yesterday.
The other highlight of Gujrals visit is to be the exchange of the instruments of ratification of the Mahakali agreement, which has already been concluded.
Shukla said the agreements could lead to greater exports from Nepal and to its enhanced industrialisation.
Shukla spoke glowingly of a quantum jump in the nature of relations between India and Nepal in the last year or two and referred to a new spirit of cooperation, a new openness to each other.
He pointed out that this was Gujrals first bilateral visit and that Nepal was an unabashed supporter of the Gujral doctrine on regional cooperation.
Sub-regional cooperation, involving Bangladesh, Bhutan, Nepal and India, could also come up during discussions.
Gujral is likely to discuss trade between the two countries after India and Nepal renewed last year a 46-year-old bilateral trade treaty, which is expected to give a new thrust to Indo-Nepal trade, achieve greater trade balance and reduce Nepals trade deficit with India.
Asked about Indias concerns over infiltration of terrorists via Nepal, he asserted that Nepal had assured India that it would not allow its soil to be used for any anti-India activities.
Home minister Indrajit Gupta had stated in Parliament recently that the ISI was suspected to be misusing the lax security arrangement and liberal regime in Nepal to support terrorist activities in India
Nepal has, however, categorically denied that its soil was being used by the ISI for subversive activities in India.
Gujral is slated to discuss matters with Nepalese Prime minister Lokendra Bahadur Chand and King Birendra, both of whom are hosting dinners for him, and with Nepalese foreign minister Prakash Chandra Lohani and leaders of various national political parties.
According to external affairs ministry sources, both the countries would discuss and review the progress in implementation of the ongoing Indian assisted projects. The visit was expected to make significant contribution towards strengthening the traditional bonds of friendship and cooperation between the two countries, they said.
India is likely to discuss with Nepal its demand for an increase in seats in air traffic between the two countries and finalise an agreement for private airlines participation in the Indo-Nepal route.
As part of its proposal for a liberal treaty in the aviation sector, Nepal agreed to permit private Indian airline to operate in their country and had urged India to reciprocate.
Under the existing arrangement, India and Nepal can operate only one carrier each between the two countries per day.