India proposes joint mechanism for energy cooperation
KATHMANDU, March 5: A day after Indian Prime Minister Manmohan Singh said the southern neighbor was ready to cooperate with Nepal for the development of hydropower projects, visiting Power Secretary of India, Pradip Kumar Sinha, has proposed to form a joint-mechanism for effective communication on the issues of energy cooperation between the two countries.
Citing progress in energy cooperation between India and Bangladesh, Sinha stressed the need for instituting similar mechanism with Nepal to increase cooperation in energy sector.
There already exists Joint Committee on Water Resources (JCWR) between Nepal and India that work to promote mutual cooperation on water resources. Secretary at Nepal´s Ministry of Energy and Secretary at India´s Ministry of Water Resources represent their respective governments in the committee. However, there is no such bilateral body looking after energy issues.
Speaking at a talk program on ´Growth of Indian Power Sector´ organized by the Embassy of India in Kathmandu in association with Nepal India Chamber of Commerce and Industry on Tuesday, Sinha said there was no communication between ministries of two countries looking after energy issues so far.
Bishwa Prakash Pandit, secretary at the Ministry of Energy, said he was excited with the Indian proposal. During a meeting on the sideline of BIMSTEC meeting in Myanmar with Nepal´s Prime Minister Sushil Koirala on Monday, Indian Prime Minister Singh said, “We always stand ready to expand the cooperation in hydropower projects in Nepal.”
India willing to sign PTA
India has expressed interest to sign Power Trade Agreement (PTA) with Nepal. Sinha said Nepal can sign PTA with any state-level power companies of India or central Power Trade Corporation (PTC) as per its requirement.
New Delhi showed interest to sign PTA at a time when Nepal is waiting for exchange of power to fulfill energy deficit through ´energy banking´.
Energy banking is a concept of exporting surplus energy during wet season and importing energy to fulfill requirements during dry seasons.
High-level officials at the Ministry of Energy have termed the Indian offer ´positive´. They, however, are surprised by the Indian offer as the southern neighbor had been turning deaf ear on Nepal´s proposal to sign Memorandum of Understanding (MoU) for power trading.
Nepal had proposed to India to sign MoU for power trade in 2010.
Sinha also suggested for policy intervention including a fast-track procedures for hydropower developer to speed up energy development in Nepal.
Stating that liberal policy of 2003 embraced by India expedited hydropower production in his country, Sinha said Nepal should also encourage the private sector. Energy generation by private sector has doubled in India after the policy was implemented in 2003.
“Not only India, Nepal can export energy to other neighboring countries as well,” added Sinha.
He also said energy exchange will be possible only after the completion of the Mujaffarpur Dhalkebar 400 Kv cross border transmission line.
The project is expected to complete in December, 2015.
Sinha also underlined the need to construct additional cross border transmission line for better energy cooperation.
Source: REPUBLICA
