CPN-M to act against Indian investment in hydropower

KATHMANDU, MAY 07 -

The CPN-Maoist on Tuesday spoke against foreign investment in Nepal’s rich but untapped hydropower sector, particularly targeting Indian firms that are developing four major hydroelectricity projects.

Though the party’s position on opposing Indian investment in the sector is not new, the latest move has made stakeholders doubt the future of these projects if the party actually goes beyond its rhetoric to create obstruction on the field.

Moreover, two Indian firms are set to sign a power development agreement (PDA) with the Nepal government.

Officials said GMR India and Sutlej Jal Vidyut Nigam Ltd (SJVNL) are currently negotiating a PDA with Investment Board Nepal to develop Upper Karnali, Upper Marshyangdi and Arun III projects.

Organising a press conference in Kathmandu on Tuesday, CPN-Maoist Chairman Mohan Baidya said the party’s agitation would be against Upper Karnali, Koshi High Dam Project, Upper Marshyangadi and Arun III projects. The four projects are at various stages of development with Indian investments.

GMR India is developing Upper Karnali (900 megawatt) and Upper Marshyangadi (600MW) projects while the multipurpose Koshi High Dam is directly handled by the central government of India. The SJVNL is developing Arun III (900MW).

Unveiling a programme of action including political agenda, Baidya said the party will organise a protest programme on Thursday at the headquarters of the districts where the projects are located. The Water Resources Department of the party will organise a talk programme on the same day in Kathmandu on the issue, entitled “water resources and national treason”.

“These projects favour India more than Nepal. We will obstruct their implementation until the unequal agreement is replaced by a new [fair] one,” Baidya told the media. Earlier, the party had asked the government to scrap the agreement on allowing Indian firms to invest in Nepal’s hydro sector.

The party always relates Indian investment in the hydro sector to nationality. “Our party is of the opinion that until unequal agreements, treaties and contracts are rectified, the projects should not be constructed,” said Baidya.

The move is a part of the decisions taken by the party’s Politburo meeting that concluded early this week.

Source: The Kathmandu Post