Modi’s visit to focus on economic cooperation

KATHMANDU, JUL 31 -

Indian Prime Minister Narendra Modi’s upcoming visit to Nepal will focus on bilateral cooperation that rests on economic footing and spirit of partnership, according to Minister for Foreign Affairs Mahendra Bahadur Pandey.

 “As we know Modi has accorded top priority to the economic development, we will also focus on strengthening bilateral economic ties that would benefit both nations,” said Pandey, talking to a select group of reporters at the Foreign Ministry on Wednesday. Energy related agendas like signing of Power Trade Agreement (PTA), Project Development Agreement (PDA) of Upper Karnali Hydroelectric Project, cross-border transmission line; infrastructure-related projects like expansion and upgradation of road and rail networks and construction of cross-border petroleum pipeline are some of the key areas that the two countries would be discussing during Modi’s Nepal visit.  “We will focus on developmental projects and economic cooperation, for which we have already laid a groundwork during the recent visit of Indian External Affairs Minister Sushma Swaraj,” he said. In another context, Minister Pandey said that Modi’s visit to Lumbini—the birth place of Lord Buddha—will depend on weather conditions. “We are trying to organise a trip to Lumbini and the window is open.

If the weather permits, the Indian PM could visit Lumbini on Monday,” said Pandey. But Modi will certainly not visit Janakpur owing to poor infrastructure and security situation there.

PTA text in final stage

A three-member taskforce to finalise the text of Power Trade Agreement (PTA) got down to its business on Wednesday, holding discussions with the senior officials of the Energy Ministry.

The cross-party panel formed on Tuesday will forward a PTA draft to the Indian side latest by Thursday so that an agreement can be signed during the Indian premier’s visit.

On border issues, the panel has agreed to seek bilateral welfare but will not compromise Nepal’s national interest, segregation of power generation and development from the proposed PTA draft.

According to UCPN (Maoist) leader Narayan Kaji Shrestha, a member on the panel, the proposed draft will not have any clauses that will create tariff barriers in bilateral power trading,  and power traders can trade energy trade in each other’s country.

The draft has a provision that any third party can do trade in Nepali and Indian market and will create an environment for common energy market on regional or sub-regional basis. Similarly, it has also proposed to expedite the work for transmission and grid network, and mete out fair treatment to other parties interested in transmission and grid extension.

“We have not proposed any price ceiling for power trading. Let the market take its own course,” said Shrestha, adding the draft will also remain silent on power purchase agreement between any bilateral or trilateral parties.

Source: The Kathmandu Post