September 18, 2007
Another Indo-Nepal Power Project
Comes to a Halt By Sudeshna Sarkar
Kathmandu
A 3,400 MW hydropower project that will have irrigation and flood
control benefits for both India and Nepal has now come to a halt,
like most projects between the two neighbours, due to Maoist
interference.
The Saptakoshi multipurpose project in eastern Nepal, that is
expected to control floods in Nepal as well as India's Bihar state,
has been in limbo for nearly four months due to opposition by the
Kiranti Rastriya Morcha, which is affiliated to the Maoists.
India's Minister Of State For Water Resources Jaiprakash Narayan
Yadav recently said that India was pressing for speedy construction
of the 269-metre dam on the Saptakoshi river to mitigate flood
disasters and the detailed project report would be completed by
2008.
However, it seems highly improbable, given that only about 35
percent of the work has been done, though it started in September
2004.
D.P. Mathuriya, an official from the Indian side based in Nepal's
Dharan town, was reported as saying that it was unlikely that the
project would be completed on time.
When India and Nepal signed the Saptakoshi agreement in 1997, Rs.300
million was allotted for the DPR (detailed project report), which
was expected to be completed in 30 months.
But with prolonged delays, first due to the Maoist insurgency and
political instability and then resistance by the locals, the cost of
the DPR has now shot up to Rs.700 million.
The Kiranti Rastriya Morcha has stopped work on the DPR saying the
authorities did not take the consent of the local people, who face
displacement and environment degradation due to the high dam.
They are also demanding employment for the Kiranti community in the
project.
Anti-dam activists from India and Nepal are also opposing the
project.
The news of the Maoist fiat on Saptakoshi comes at a time India's
PTC India and Nepal's Independent Power Producers Association of
Nepal and Nepal Bankers' Association are holding a two-day power
summit in Kathmandu in the hope of giving a boost to Nepal's
hydropower sector and promote Indo-Nepal ventures.
Though Nepal has the potential to generate 10,000 MW by 2020, it is
doubtful how much of the potential would be realised given the
politics obstructing the sector.
With a critical election scheduled for Nov 22, the Election
Commission Tuesday enforced the election code of conduct that
prevents the government from signing any new project till the
election.
Currently, it is doubtful if the election would be held at all with
the Maoists threatening to quit the government.
Even if they stay on, Nepal's army has reportedly briefed Prime
Minister Girija Prasad Koirala that the election results, if they
are not to the liking of "certain parties", may cause fresh
violence.
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