Nepal | October 23, 2020

‘Nepal-India-Bangladesh trilateral PPA on cards’

Rewati Sapkota
Share Now:

Kathmandu February 18

Minister of Energy, Water Resources and Irrigation Barsha Man Pun today said the government expected a trilateral Power Purchase Agreement between Nepal, India and Bangladesh on the Upper Karnali Hydropower Project during the upcoming investment summit slated for March 29 and 30.

Addressing a question-answer session in the House of Representatives, Pun said the agreement would facilitate export of 500MW energy generated from the 900MW Upper Karnali project to Bangladesh.

During his visit to India last week, Pun had held meetings with his Indian counterpart, and officials from India’s Power Trade Company and GMR, the Indian company developing the project. “Indian authorities have expressed commitment to sign the PPA during the investment summit,” he said.

Pun said he also floated an alternative proposal in Delhi that if GMR was not able to develop the project, Nepal government would build it by allocating shares in the project to GMR equivalent to its investment so far. “Locals are expressing frustration over delay in the project construction, and we are also feeling the same. We do not want to delay the project any more,” he said.

Following Nepal Investment Board’s inquiry, GMR had, on January 23, submitted its progress report, seeking a one-year extension for the project’s financial closure. It said in the progress report that PPAs with Bangladesh and India’s Haryana state government (300MW) would be done in the next two months.

Pun said he told Indian authorities the PPAs should be signed during the summit. “The Indian side told me the draft PPA to be signed between GMR and Bangladesh government was in the final stage and that they were ready to sign a trilateral agreement, including Nepal,” he said.

Nepal-Bangladesh Joint Steering Committee meeting held in Kathmandu on December 4 had decided that Bangladesh would buy electricity from the project. “Haryana government has agreed in principle to buy 300MW electricity from GMR,” Pun said.

GMR has been holding the project since 2006 when it won the contract through global biding. As per the contract agreement, Nepal Electricity Authority will get 108MW energy for free and 27 per cent equity share.

Detailed Project Report, Environment Impact Assessment, and EIA for transmission line have already been endorsed by Nepal government. The government has also paved the way for the project to acquire the required land, and a rehabilitation and resettlement programme for those to be affected by the project has already been made public. Of the total 49 hectare of private land required, the project has already acquired 7.4 hectare.

Pun said Nepal had already started exporting surplus energy to India under the energy banking system. He said the exports amounted to Rs 160 million so far this fiscal, while last year’s exports stood at Rs 70 million. “We will export energy worth billions of rupees from next year after Upper Tamakoshi project starts generating 456MW electricity. We are not very far from becoming self-reliant in energy. We will export our surplus energy to whoever gives better price among India and Bangladesh,” said Pun.

Nepal will have energy surplus in the rainy season and face shortage in the dry season, while it is the opposite in India and Bangladesh. “We can buy energy at cheaper rates in winter, and sell at higher rates in rainy season. No energy will be wasted,” he said.

He said the government was working to ensure generation of 3,000MW energy in the next three years, and complete projects generating 5,000MW in five years. The government plans to generate 15,000MW in 10 years. “We are planning to invest Rs 3 trillion to complete the projects. We will raise the funds from the general public, foreign investors and loans and grants,” he said.


A version of this article appears in print on February 19, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

President Bidhya Devi Bhandari inaugurates Ranipokhari

KATHMANDU, OCTOBER 21 President Bidhya Devi Bhandari today inaugurated the historic Ranipokhari and the temple at the middle of the pond. The 2015 earthquakes had reduced the temple to rubble. President Bhandari was accompanied by Prime Minister KP Sharma Oli at the function today. Both th Read More...

National Examinations Board (NEB) Nepal

Grade XII exams from November 24

KATHMANDU, OCTOBER 21 The National Examination Board, which has been authorised by the government to conduct examinations of Grade XII, has finally published the notice about conducting the examinations from November 24 to December 1. The NEB devising the new protocol to hold the examination h Read More...

Teku’s Radha Krishna temple restored

KATHMANDU, OCTOBER 21 UNESCO, in collaboration with the Department of Archaeology, has completed rebuilding of the shikhara-style Radha Krishna temple located at the confluence of the holy Bagmati and Bishnumati rivers at Teku, Kathmandu. To mark the completion, Jeev Nyas Puja, a ritual to Read More...

Traffic lights functional in 24 thoroughfares in valley

KATHMANDU, OCTOBER 21 Metropolitan Traffic Police Division today said traffic lights had been brought back into operation in various thoroughfares of Kathmandu valley. According to MTPD, traffic lights have been brought into operation at Singha Durbar, Padmodaya, New Baneshwor, Putalisadak, Su Read More...

EDITORIAL: The heat’s on

When the country is having to import rice worth billions of rupees annually, declining output due to droughts and other reasons is worrisome With precipitation far above average across the country, this monsoon was an extremely wet one. Or so we thought. But parts of the country were subjected to s Read More...

Government should reconsider decision: Free PCR tests are a must

With the government washing its hands of its responsibility for controlling the coronavirus pandemic through free tests and treatment, people may hesitate to get themselves traced, tested and treated at their own expense. They will, in all probability, hide their infection, if they catch it The gov Read More...

Vedanta in quantum world

From a superficial view, Vedanta and quantum mechanics may look extremely different. One is a part of evolution of modern physics while the other is the world’s most ancient spiritual philosophies about Hinduism. But both are a part of the same universe. So they must have the same underlying re Read More...

Man who fell off cliff being treated in Kathmandu

BAJURA, OCTOBER 21 Mansingh BK, who was deprived of treatment due to financial crisis after he fell off a cliff, is undergoing treatment in Kathmandu. A resident of Ward No 9 of Badimalika Municipality, BK fractured his backbone when he fell from ta cliff. He was facing problems in treatme Read More...