KATHMANDU, SEPTEMBER 4

The Independent Power Producers' Association, Nepal (IPPAN) has requested former ambassador of India to Nepal Ranjit Rae to facilitate electricity trade in the Indian market.

On Sunday, in a program jointly organised by the ASEAN Institute of Diplomacy and International Affairs (AIDIA) and IPPAN, members of the association discussed various issues seen in the Nepal-India electricity trade and the problems faced by private promoters of Nepal due to electricity trade rules and guidelines introduced by the government of India with former ambassador Rae.

In his response, the former ambassador said that while many issues between Nepal and India are connected with geopolitics, it is not possible to close relationships to the full extent, adding that the case related to the power trade guidelines is likely to be resolved as it is 'not bound by an uncrossable line'.

Speaking on the occasion, Chairman of IPPAN Ganesh Karki informed that Nepal has prepared a roadmap to produce 25,000 megawatts of clean energy within the next decade after Indian Prime Minister Narendra Modi announced willingness to import of 10,000 megawatts of electricity from Nepal in the next 10 years during Prime Minister Pusha Kamal Dahal's visit to India.

Shailendra Guragain, former president of IPPAN, said that the private sector has also established the Nepal Power Exchange Ltd (NEPEX) to facilitate electricity trade with India and stressed diplomatic initiatives to create an environment wherein the private sector of Nepal can trade power with the private sector of India.

IPPAN Joint General Secretary Prakash Dulal reminded that Indian investment projects have been hindered due to the comments that India is not working in the interests of Nepal, and said that there is a great potential for Indian investment in Nepal if the public can be made clear about the benefits and harms of the project right from the study phase.

In response, former ambassador Rae said that while both countries are to benefit from the projects, some politicians of Nepal have made a name by badmouthing Indian projects. He also said that no project can be carried out if there isn't any benefit for both countries, and it is the responsibility of the Nepali citizens to create a favourable environment by explaining the benefits of such projects to other Nepali citizens.

Speaking about the Pancheshwar hydro project, former ambassador Rae said that the construction of this project would cause more damage to India than to Nepal, considering the need to resettle the locals in the region. He said that although there is no ambivalence about taking 50-50 per cent of the electricity coming from the project, it is true that the Indian side will get some more benefit in irrigation as there is no arable land in the Nepali territory. He said that Nepal should proceed by taking other benefits.

Responding to remarks from Mithun Poudel, executive committee member of IPPAN that if India builds a cross-border transmission line between Nepal and India in mountainous areas, it will be easier for Nepal's electricity to be exported to India, former envoy Rae requested to bring such a proposal through the Nepal government.

A version of this article appears in the print on September 05, 2023, of The Himalayan Times.