India defers power trade deal yet again
KATHMANDU, July 28:
Nepal had high hopes of signing Power Trade Agreement (PTA) with India at the Joint Commission meeting on Saturday, but things did not work out as planned due to differences over the wordings used in the bilateral cooperation proposal forwarded by India recently.
Nepal had proposed signing Power Trade Agreement (PTA) and a deal on construction of cross-border transmission lines with India. Sources at Ministry of Energy, however, said that the two sides failed to strike a deal due to differences over the wordings in the proposal forwarded by India. The Indian proposal sought an umbrella agreement for bilateral cooperation, including Indian investment in hydropower projects.
Former energy ministers and experts had warned the government against signing such an agreement.
Highly placed sources at the Ministry of Energy expressed ignorance as to why the decision on signing the PTA was deferred. “India also needs energy and it is not understandable why the agreement was deferred,” said the source. Though the government could not send the energy ministry team to Delhi to lay grounds for singing PTA between the two countries following widespread criticism of India’s proposal, the cabinet meeting on Friday had also endorsed the agenda of signing PTA.
Energy Minister Radha Gyawali expressed discontent for failing to make breakthrough in the talks with Indian officials. “I am hopeful there will be a breakthrough in PTA talks during Modi’s visit to Nepal,” she said, adding, “Both the sides should move closer toward signing the agreement as power trade is in the interests of both the countries,” added Minister Gyawali.
However, Spokesperson for the energy ministry Keshav Dhwaj Adhikari said it was unlikely for the two countries to sign PTA during Indian Prime Minister Modi’s visit as the two countries have not even held secretary-level talks on the issue.
The 17th clause of the joint press statement of JC meeting reads, “Both the sides directed the concerned authorities to finalize the draft of Power Trade Agreement at the earliest.”
Experts say this is not the first time India has deferred bilateral power trade agreement, which would be crucial to attracting investment in Nepal’s hydropower sector.
Former energy secretary Balananda Paudel said, “Nepal has raised the issue of PTA at several high level meetings, including Nepal India Joint Committee on Water Resources (JCWR), and Nepali prime ministers’ visit to Delhi since 2009. But India has deferred the agreement time and again.”
Nepal had sent PTA proposal to India in 2010, but India has deferred decision on the issue saying the subject is under discussion. Another argument behind India’s reluctance to sign PTA is that Nepal does not have adequate electricity to export to India.
Former Energy Minister Prakash Chandra Lohani said India wants to sign bilateral cooperation agreement and that Nepal should not only seek power trade agreement with India.
Source: The Kathmandu Post
