IPPAN Appeals to Former Indian Ambassador for Support in Promoting Electricity Trade
The Independent Power Producers' Association, Nepal (IPPAN), has made a formal request to Ranjit Rae, former Indian ambassador to Nepal, seeking his assistance in facilitating electricity trade between the two countries.
During an event jointly organized by the ASEAN Institute of Diplomacy and International Affairs (AIDIA) and IPPAN, members of IPPAN engaged in discussions surrounding various challenges prevalent in Nepal-India electricity trade. They also deliberated on the difficulties faced by private promoters in Nepal due to the electricity trade regulations and guidelines introduced by the Indian government.
In response to these concerns, the former ambassador acknowledged that while many issues between Nepal and India are influenced by geopolitics, it is crucial not to sever relationships entirely. He expressed optimism that the issues related to power trade guidelines could find resolution, as they are not bound by insurmountable barriers.
Ganesh Karki, Chairman of IPPAN, disclosed that Nepal has outlined a strategic plan to generate 25,000 megawatts of clean energy within the coming decade, following Indian Prime Minister Narendra Modi's commitment to import 10,000 megawatts of electricity from Nepal over the next ten years, as announced during Prime Minister Pusha Kamal Dahal's visit to India.
Shailendra Guragain, former president of IPPAN, emphasized the establishment of the Nepal Power Exchange Ltd (NEPEX) by the private sector to facilitate electricity trade with India. He stressed the need for diplomatic initiatives that would create a conducive environment for power trading between Nepal's private sector and its Indian counterpart.
IPPAN's Joint General Secretary, Prakash Dulal, drew attention to how negative comments regarding Indian investment projects have hindered progress. He emphasized the potential for Indian investments in Nepal and the importance of educating the public about the merits and drawbacks of such projects from the very outset.
In response, former Ambassador Rae underscored the mutual benefits that both countries could derive from such projects. He acknowledged that some Nepali politicians have garnered attention by criticizing Indian initiatives but emphasized that projects must be mutually advantageous. Rae stressed the responsibility of Nepali citizens in conveying the benefits of these projects to their compatriots.
Regarding the Pancheshwar hydro project, the former ambassador noted that its construction could potentially impact India more than Nepal, especially in terms of resettling locals in the region. While acknowledging the agreed-upon 50-50 distribution of electricity from the project, he pointed out that India stands to gain additional benefits in irrigation due to the lack of arable land in Nepali territory. Rae suggested that Nepal should explore other avenues for benefits.
Responding to Mithun Poudel, an executive committee member of IPPAN, who suggested the construction of a cross-border transmission line in mountainous areas to facilitate Nepal's electricity export to India, the former envoy encouraged bringing forth such proposals through the Nepal government.
