On/Off the Record
By P.R. Pradhan
During the election campaign on the eve of the 13 May local elections, Prime Minister Sher Bahadur Deuba informed that the government is planning to ink a deal with India for constructing the reservoir model multiple hydropower project, West Seti. He said that he had planned to talk on the issue and sign an MoU during the Lumbini visit of his Indian counterpart Narendra Modi on 15 May.
Deuba also informed that India has denied importing electricity produced through the investment from other countries, therefore, he has wished to hand over the West Seti hydropower project to India with the plan of exporting electricity there.
Meanwhile, according to reports, Deuba, during his talks with Indian Prime Minister Modi on 15 May, has learnt to have requested his Indian counterpart to manage fund for the construction of the West Seti hydropower project.
Handing over such key multipurpose projects to India without homework has raised the eyes of the concerned Nepali hydropower experts.
In the recent past, Nepal suddenly scrapped a deal with China for the construction of the much talked about reservoir model multipurpose hydropower project, Budhigandaki. It is suspected that the present government known to be pro-Indian and pro-West, has scrapped the project to reward India.
Already, the government has rewarded India with the Arun 3 project, which is under construction and Upper Karnali, which is occupied by an Indian company for years. The construction works in the Upper Karnali have not been started as the investor is unable to manage the fund to complete the project.
In 1996 Nepal and India had inked the Mahakali Treaty to construct the Mahakali multipurpose project. Until now, the detailed project report of the project has not been completed. These are the Nepali experiences on the Indian intention.
Nepalis believe that India doesn’t want to see Nepal’s development but wants to exploit Nepal’s natural resources. More than that, India is eying on Nepal’s water than electricity. Water is important for India for irrigation of land in the UP and Bihar. India is also seeking the source of drinking water in these states including the capital city Delhi. Moreover, as India is developing waterways from UP to Calcutta, much water is needed in the Indian River to operate ships. Nepal’s multipurpose reservoir model projects such as Budhi Gandaki, West Seti and Upper Karnali are the key sources to receive water from Nepal during the dry season. Therefore, the Indians are investing a huge amount of money in the leaders from different political parties. Meanwhile, Deuba is very happy to serve the Indian design.
The present practice is that Nepal is buying electricity from India at a minimum of 10 to 16 rupees per unit, whereas selling it to India at four rupees per unit. Viewing such a paradox, our hydropower experts have opined to supply electricity to the local industries at a subsidized tariff rather than thinking of earning foreign currency by exporting electricity to India. Additionally, India should pay revenue to Nepal for using our water, experts have argued. They have also opined for the construction of such huge projects including Budhigandaki through our own investment and the Nepali people without any objection, are paying 15 rupees as the infrastructural tax on the consumption of each litre of petroleum products. The government leadership which has been strongly manipulated by Delhi doesn’t show the courage to construct such projects through the country’s own investment. Instead, it is suspected that the government has misused the tax paid on petroleum products for infrastructural development. The easy way the Nepali leadership has felt to sell such projects considered to be a game-changer changer for Nepal to hand over to India.
Selling electricity to India at 4 rupees is just like selling electricity free of cost. If we supply electricity to the local industries at a subsidized tariff, they will be able to produce final goods at a low price, from which they can compete in the international market. The flourishing of industry in Nepal is important for employment generation, substituting imports, increasing exports and finally making the economy vibrant. But those India serving political leaders are distributing false dreams to the Nepalis and offering all the benefits to India.
The Indians have constructed different hydropower projects in Bhutan. Today, hydropower experts in Bhutan believe that they have been exploited by India in the revenue deal. They have felt that Bhutan would benefit much if she would have used electricity for industrial purposes. We could learn lessons from Bhutan also but our political leaders are stressing the export of electricity and earning foreign currency by selling it even far below the production cost. Surely, our economy will never become strong from such a government policy.
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