INDIA-NEPAL HYDROPOWER COOPERATION
What’s news?
Nepal and Indian authorities have signed an agreement with the goal of achieving 10,000 megawatts of electricity export to India over the next ten years.
Indian hydropower projects in Nepal
• West Seti and Seti River (SR6) Projects (1,200 MW),
• Sapta Kosi High Dam project on the Kosi river,
• Mahakali Treaty (6,480 MW), the Upper Karnali Project(900 MW), and the Arun-III projects(900 MW),
• Phukot Karnali Hydroelectric Project
o Through contracts between NHPC and VUCL (Vidyut Utpadan Company Ltd), Nepal.
• Lower Arun Hydroelectric Project
o Through a contract signed between SJVN (India) and the Investment Board of Nepal.
| Significance of cooperation for India | Significance of cooperation for Nepal |
| Bilateral cooperation: Hydro-power cooperation is a solid pillar in India-Nepal relations. Energy demand: Nepal’s enormous water wealth and huge hydropower potential can cater to India’s increasing energy requirement. China Factor: It will help India minimise the geopolitical influence of China and firm India’s presence in Nepal. | Technological Expertise: Collaboration with India provides access to technological expertise and experience in the construction and management of hydropower projects. Infrastructure Development: Investments from India can help build the necessary infrastructure in Nepal. Export Revenue: Exporting surplus electricity to India can become a source of revenue for Nepal. |
Key development issues in hydropower
• Natural limitations: Fragile geology and poor hydrological data, high sediment load in rivers in Nepal, and glacial silt.
• Poor Infrastructure: Poor access roads to site and transmission grid for power evacuation makes the projects unattractive.
• Chinese issue: India does not want to buy power generated from hydropower projects in Nepal developed by Chinese companies.
• Lack of policy and regulatory framework for third party access to the grid.
• Water sharing problems: Downstream water use and flood control issues etc., also arise with larger multipurpose projects.
Next Steps
• Resilient and effective infrastructure: Helping Nepal develop its transmission infrastructure within the country and the interconnections to India.
• Hydropower as a multiplier: Both sides should view hydropower development in Nepal as a means to enable long-term cooperation and stability in the region.
• Coverage beyond: Projects can, and could, extend to other regional partners under a Bangladesh-Bhutan-India-Nepal (BBIN) framework for cross border energy cooperation.