Kathmandu, May 30:

Members of the parliamentary Natural Resources Committee (NRC) are keen on having a “good look” at the proposed Nepal Electricity Bill-2007 and Nepal Electricity Regulatory Commission Bill-2007.

The demand to review the bills has come in the wake of the inconsistencies that have marred the 750 megawatt West Seti Hydropower Project. The NRC is currently debating on the stance the government must take on the project. “We want a law which leaves no room for any discrepancy in the way negotiations are conducted. Many are alarmed by the conditions of the contract with Snowy Mountain Engineering Corporation over West Seti under the governing law,” NRC member Prakash Jwala said. The issue is why the authorities concerned have settled for 10 per cent cash instead of 10 per cent energy as royalty from the project when the Australian firm finally starts generating power and exporting it to India.

While the memorandum signed 10 years ago had said Nepal will be entitled to 10 per cent energy, the project agreement signed five years on had inserted the phrase “energy or cash.” This is being taken as an instance of the authorities drifting towards a scenario where the government loses, as the amount paid would be at the rate of the power sold in India, which is lower than in Nepal. “The Minister of State for Water Resources and the Finance Minister have defended it. But we are currently debating on our final position,” Jwala said.

However, the draft of the Nepal Electricity Bill-2007 is being taken as an improvement. But Nepal Electricity Regulatory Commission Bill-2007 is expected to retain uncertainty over the jurisdiction of the panel and the ministry. The problem, sources said, lies in the provision that while NERC will take care of the regulation job, details will be later spelt out by the Regulation.