India, Nepal clear decks for hydel power project

SILIGURI/DHARAN: After remaining in the backburner for nearly 15 years after a bilateral treaty between India and Nepal, the 6400-mw multipurpose Pancheswar hydel power project is finally going to see the light of day. The two countries have set a January 2010 deadline to form Pancheshwar Development Authority (PDA) for execution of the single largest Indo-Nepal water resource utilisation project. The issue hogged limelight at the just concluded Nepal-India secretary level meet on water resources at Pokhra, Nepal.

While the Indian delegation was headed by secretary, water resources ministry, U. Panjiyar, Nepal was represented by a team headed by secretary, power ministry. S. Koirala. According to Mr Koirala, the two governments are going to shoulder equal costs for running PDA that will have its headquarters at Mahendranagar, Nepal. A separate Pancheshwar Development Trust will be formed to manage the fund raised for Pancheswar project.

The project is going to have a mammoth storage dam on the Mahakali river at the boundary of Uttarakhand and Nepal. Nearly 80% of the catchment area for the project would be in India leaving the rest in Nepal.

With an annual 225 billion cubic metres water flow, Nepal hosts commercially feasible potential of 44,000 mw of hydropower. Out of which, present potential utilisation is only around 1.75%. "We have always been interested in Nepal’s hydropower sector. Projects developed with Indian assistance can give Nepal financial strength while meeting India’s growing power need," said Union power minister S K Shinde talking to ET earlier.

Besides India, an equally interested China has also set its footprint on Nepal’s hydropower sector. It is clear that either India or China, anyone having better presence in Nepal’s hydropower sector will have a larger cushioning benefit.