Will this be a business deal where both countries benefit or we will be sold out is yet to be seen..

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Nepal may power up northern grid

Gayatri Ramanathan in Mumbai | June 08, 2006 13:02 IST

Border trading of power from West-Seti in western Nepal to be taken up during Nepal Prime Minister G P Koirala's visit.

The Centre is seriously considering the option of importing power from hydro potential-rich neighbour Nepal. The government has already identified the West-Seti project in western Nepal as a possible source to feed the power-hungry northern grid.

PTC India Executive Vice-President Rajiv Bhardwaj said outstanding issues in the safe and sustained cross-border delivery of power from the project were likely to be sorted out during Koirala's visit. The West-Seti project falls in the middle of territory controlled by Maoist rebels.

The Centre has identified PTC India as the nodal agency for initiating power trading with Nepal and Bhutan. Bhardwaj made it clear that PTC would not buy power unless it was delivered across the border at Bareilly.

"They have to sort out their political issues. We will pay if and when power is delivered to us across the border at Bareilly," he said.

PTC has already signed a PPA with West-Seti, which will evacuate its entire output to India. At present, India buys 50 Mw power from Nepal and the two sides decide the tariff jointly at periodic intervals.

The 750-Mw West-Seti project in western Nepal has a bonded capacity of one month with a peaking capacity of eight hours a day. Bhardwaj indicated that sourcing power could help tide over the deficit in the northern grid. The project is likely to benefit UP, Bihar and Uttaranchal.

A special transmission line was being planned to evacuate 750 Mw that would be available once the project began operations in 2010, Bhardwaj said. PTC is also in discussions with other developers of private power projects in Nepal.

It is already sourcing power from Bhutan, which is being fed into the eastern grid. PTC has signed long-term agreements with Bhutan's department of energy for purchase of 336 Mw from the Chukha Hydroelectric Project and 60 Mw from the Kurichchu project. It has negotiated an agreement to purchase 860 Mw of power from the Tala project.

A special transmission line is being laid from Tala in Bhutan right up to Delhi. The first phase of this line, which was being built as a joint venture between Tata Power and the Power Grid Corporation, was completed in April this year.

http://www.rediff.com/money/2006/jun/08nepal.htm

It really baffles me!! Our country stands as the second richest country in hydro-electricity. With such a huge demand in energy, what is Nepal doing to reap the benefit of the situation? Yes, I agree that electricity cannot be transferred thousands of miles like oil but neither should it be. Looking at the strategic position of Nepal between two of the worlds fastest growing and energy gobbling economy, it is a pity that Nepal is not being able to exploit the situation. It is a given that in any day 30-40% of chinese industries are being closed down at least couple of hours a day due to the lack of electricity. Why can't the dumb*$$ES in Nepal see the potential? With oil poised to stay at its current price for at least next 5-7 years, isn't this the right moment to be taking some action? Isn't it time for Nepalese government to loosen the restrictions on foreign investments? I think that time is gone when foreign investments are viewed as a takeover of national freedom. Recently GE announced an investment in India worth over $1 Billion to generate electricity. Just imagine what an investment even half that magnitude do to nepalese economy! The more I broode over it the more frustrating it seems.