Tapping Hydro, Tourism

MUCH rhetorics have been expended on the tourism that hydropower and tourism are twin important areas where Nepal and India could cooperate with each other closely and reap mutual benefits. Nepal boasts of huge potentials in hydropower, blessed as it is with hundreds of rivers that can be tapped. India requires a lot of energy to meet its industrial and consumer needs. For many Indian investors, Nepalese hydropower sphere could certainly be a place where they could wisely invest with promise of healthy returns. In the same manner, Nepal could do with attracting more Indian tourists who generally find Nepal as a near and affordable destination. Somehow, however, not enough efforts have been put into developing ideas and programmes in these twin areas. Indian investors have for the large part shied away from investing in hydropower while the Indian market, traditionally the largest supplier of tourists to Nepal’s tourism industry, has seen severe downturn in recent times, on account of a number of reasons. While there is a plethora of reasons why Nepal’s tourism industry has nosedived in recent times, inconveniences like, for instance, the requirement for an Indian tourist to produce an identification card in order to board the plane to Nepal have contributed to the dip in Indian tourist arrivals in Nepal, as many media reports have pointed out. Perhaps things on these two areas will change with the signing of a memorandum of understanding on Tuesday between businessmen and industrialists in the two countries.

In the presence of His Majesty King Gyanendra Bir Bikram Shah Dev, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chairman Ravi Bhakta Shrestha and Federation of Indian Chambers of Commerce and Industry (FICCI) Chairman R. S. Lodha signed a letter of understanding on setting up two separate task forces for mutual cooperation in the fields of water resources and tourism development. That two Federations have taken this initiative and want to quickly move on these two areas for mutual cooperation is very welcome. The two task forces are to be formed within the coming three months and agreement is to be reached on kick-starting the process of planning for giving concrete shape to the new business partnership. Their suggestion that the two countries reach a power purchase agreement for their mutual benefits is a sound advice, for without such an agreement, investors in the two countries would be hesitant to come forward together to develop hydropower in Nepal. The Indian Federation is also to work with its Nepalese counterpart to come up with packages to attract Indian tourists to Nepal. Considering the sluggishness so far in cooperation in these areas, the two Federations will earn a good deal of accolades if they succeed in giving a shot-in-the-arm to the development of hydropower and tourism in Nepal.

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