Power summit 2008: Hydropower sale to plug trade deficit with India
Himalayan News Service
Kathmandu, September 23:
The Third Power Summit 2008 began here today calling upon harnessing immense potential of Nepal’s water resources for the economic benefits of both Nepal and India. The summit was jointly organised by Independent Power Producers’ Association of Nepal, Power Trade Corporation of India and Nepal-India Chambers of Commerce and Industry. In his message, Prime Minister Pushpa Kamal Dahal ‘Prachanda’ stated that the Government of Nepal had targeted producing 10,000 MW of hydropower in 10 years to accelerate economic development of the country. The summit would be highly instrumental to achieve the government’s goal of generating targeted energy in the given timeframe.
“India is the largest trading partner of Nepal and covers more than two-thirds of Nepal’s international business. But in the last five years, Nepal’s trade deficit with India has reached more than Rs 105 billion,” the PM said in his message. “We, therefore, believe that hydropower is a sector that will benefit both Nepal and India and Nepal can mitigate trade deficit with India.”
Addressing the gala function, Jairam Ramesh, Indian Minister of State for Commerce and Power, said Nepal needed to develop new markets for the export of power generated in Nepal, and India is clearly one such market. He said it would require around $20 billion to generate 10,000 MW of power and it was possible only through public-private partnership and foreign direct investment. He, however, conceded that Nepal and India had not been able to harness the hydro potential at desired level.
Indian companies have won contracts on developing four hydel projects in Nepal. The GMR Group is developing the 300 MW Upper Karnali and 250 MW Upper Marsyangdi, Sutlej Jal Vidyut Nigam has won the contract for 402 MW Arun III while IL&FS and PTC are participating in 750 MW West Seti Project, which is an example of globalisation in which Nepal, Australia, India and China are taking part. “Nepal’s power export to India is a drop in India’s ocean of energy. But it will make huge difference in Nepal’s economy,” Jairam said.
Inaugurating the summit, Deputy PM Bamdev Gautam pledged all possible security to foreign-invested mega hydel projects. “We are contemplating to review existing law to give security guarantee to big projects,” Gautam said. Addressing the function, Water Resources Minister Bishnu Poudel said the government would make necessary amendment to laws related to water resources with a view to attracting domestic and foreign direct investment in water resources. “The government is committed to providing security to the projects,” Poudel said.
IPPAN president Sandip Shah said the two-day Power Summit would dwell on the issues related to project financing, risk management, risk mitigation, environmental concerns, climate change in the context of Nepali and international practices.
Powerpoints:
• Hydropower export will benefit both Nepal and India: PM
• Nepal, India have not been able to harness the hydro potential at desired level: Indian minister
• Govt to review laws to give security guarantee to big projects: Gautam
• Govt to amend laws to attract investment in water resources: Bishnu Poudel
Source: The Himalayan Times, 24 September 2008
The Third Power Summit 2008 began here today calling upon harnessing immense potential of Nepal’s water resources for the economic benefits of both Nepal and India. The summit was jointly organised by Independent Power Producers’ Association of Nepal, Power Trade Corporation of India and Nepal-India Chambers of Commerce and Industry. In his message, Prime Minister Pushpa Kamal Dahal ‘Prachanda’ stated that the Government of Nepal had targeted producing 10,000 MW of hydropower in 10 years to accelerate economic development of the country. The summit would be highly instrumental to achieve the government’s goal of generating targeted energy in the given timeframe.
“India is the largest trading partner of Nepal and covers more than two-thirds of Nepal’s international business. But in the last five years, Nepal’s trade deficit with India has reached more than Rs 105 billion,” the PM said in his message. “We, therefore, believe that hydropower is a sector that will benefit both Nepal and India and Nepal can mitigate trade deficit with India.”
Addressing the gala function, Jairam Ramesh, Indian Minister of State for Commerce and Power, said Nepal needed to develop new markets for the export of power generated in Nepal, and India is clearly one such market. He said it would require around $20 billion to generate 10,000 MW of power and it was possible only through public-private partnership and foreign direct investment. He, however, conceded that Nepal and India had not been able to harness the hydro potential at desired level.
Indian companies have won contracts on developing four hydel projects in Nepal. The GMR Group is developing the 300 MW Upper Karnali and 250 MW Upper Marsyangdi, Sutlej Jal Vidyut Nigam has won the contract for 402 MW Arun III while IL&FS and PTC are participating in 750 MW West Seti Project, which is an example of globalisation in which Nepal, Australia, India and China are taking part. “Nepal’s power export to India is a drop in India’s ocean of energy. But it will make huge difference in Nepal’s economy,” Jairam said.
Inaugurating the summit, Deputy PM Bamdev Gautam pledged all possible security to foreign-invested mega hydel projects. “We are contemplating to review existing law to give security guarantee to big projects,” Gautam said. Addressing the function, Water Resources Minister Bishnu Poudel said the government would make necessary amendment to laws related to water resources with a view to attracting domestic and foreign direct investment in water resources. “The government is committed to providing security to the projects,” Poudel said.
IPPAN president Sandip Shah said the two-day Power Summit would dwell on the issues related to project financing, risk management, risk mitigation, environmental concerns, climate change in the context of Nepali and international practices.
Powerpoints:
• Hydropower export will benefit both Nepal and India: PM
• Nepal, India have not been able to harness the hydro potential at desired level: Indian minister
• Govt to review laws to give security guarantee to big projects: Gautam
• Govt to amend laws to attract investment in water resources: Bishnu Poudel
Source: The Himalayan Times, 24 September 2008
