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Indian Power Ministry wants to tap Nepal's hydro potentials

The Indian Power Ministry has expressed its wish to tap Nepal's hydro power potentials for mutual benefit.

According to news report by IANS, owing to the power crisis, the Ministry has urged the Indian External Affairs Ministry "to open talks with Nepal to exploit some of its untapped hydroelectricity potential."

The report says that Power Secretary RV Shahi wrote a letter to Foreign Secretary Shivshankar Menon last month, emphasising the importance of utilising Nepal's 44,000 MW hydroelectric potential- of which only 650 MW has so far been developed.

The report comes at a time when Nepal is also struggling with power cuts due to rising demand of power. Nepalese authorities have been saying that they lack resources to develop big projects that could help meet its demand and allow it to sell the surplus for extra income.

The Indian Power Ministry has cited the successful umbrella agreement with Bhutan in July 2006. India has financed big hydro projects like Chukha (336 MW) and Tala (1020 MW) in Bhutan. Earnings from these projects are said to have enormously increased the national income of Bhutan. In case of Nepal, the Indian ministry has considered projects like West Seti (750 MW), Budhi Gandaki (600 MW), Arun III (400 MW), Upper Marshyanngdi (121 MW) and Upper Karnali (300 MW).

Shahi has noted that development of hydro potential "would not only enable Nepal to meet its increasing energy requirements, but would also boost its socio-economic development through sustained income from sale of surplus power."

"The power ministry has since floated an approach paper on cooperation with Nepal in development of hydroelectric projects. The paper has been sent to the Prime Minister's Office, Cabinet Secretary B.K. Chaturvedi and Water Secretary Gauri Chatterjee," the news report adds.

The power ministry argues that cooperation with Nepal would also be a confidence-building measure that could kick start discussions on multi-purpose projects, the report said. nepalnews.com sd Feb 09 07

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