National 8 (Spotlight Weekly)

Uncertain Future

As long as Nepal and India do not realize their constraints and compulsions, no agreement is possible in the area of power development

By A CORRESSPONDENT

Nepalese officials who went to India with high hopes that India will agree to buy Nepal's surplus electricity returned empty handed with Indians coming up with strong bargaining chip. The failure to reach agreement has shown that the two countries are yet to arrive at mutually acceptable formula when it comes to harnessing the water resource.

According to the press release by the Indian Embassy, the 7th Meeting of the India-Nepal Power Exchange Committee (PEC) was held in New Delhi, March 9-11, 2003. Discussions were held on the issues of power exchange and power trade. Power exchange is categorized as power supply by India to Nepal or vice versa to geographically-contiguous areas in the other country for reasons of convenience. This kind of power exchange has been carried out since more than 30 years.

Surrounded by three sides from its big neighbor India with whom it shares culture, religion and other bonds, Nepal does not have alternative market to sell its surplus power. Unfortunately, Indian proposal ignores this reality.

According to the press release, Nepal is at present a net importer of power from India. PEC needs to revise power tariff which became due in 1996. The State Electricity Boards of India, namely, Uttranchal Power Corporation Limited (UPCL), Uttar Pradesh Power Corporation Limited (UPPCL) and the Bihar State Electricity Board (BSEB) are supplying power to Nepal at a loss. The recent power sector reforms in UPCL and UPPCL have rendered it difficult for these Boards to bear these losses any more.

"We know that India is our only export market to sell surplus electricity and Nepal cannot import electricity from anywhere else other than India. We don't want the electricity in subsidy from India neither we want to sell our surplus electricity in throw-away prices," said an official on condition of anonymity.

On the issue of power trade, or power to be supplied by either country to the other country to be consumed in areas far from the border, it was decided that Nepal Electricity Board and Power Trade Corporation of India will be holding discussions to finalize all modalities on the import of surplus saleable power of Nepal into India.

Being a big country, India which has been supporting Nepal to build its infrastructures must maintain sympathetic attitude towards its smaller neighbor. Friendship cannot be judged on the basis of prices. As long as Nepal and India cannot mutually agree on certain terms and condition of power sharing, issues of regional cooperation will be mere rhetoric.

Whatever understanding is reached at the higher political level, nothing will be implemented without hammering out the differences prevailing in the official levels. The power sector officials of both the countries must realize the common destiny and bond of the two countries.