Nepal, India agree to take ahead Pancheshwor project after two and half decade of Mahakali Treaty

Nepal and India have finally agreed to take ahead with the Pancheshwor Multi-purpose Hydropower Project, which has been left undecided for a long time since the Mahakali Treaty between the two countries.

The two sides shared an agreement to advance the project after they held the bilateral talks- between visiting Prime Minister Sher Bahadur Deuba and Indian Prime Minister Narendra Modi in India on Saturday. The delegation-level bilateral talks were held at Hyderabad House, which was followed by the press meet.

Even the detailed project report (DPR) has not been prepared despite the passage of two and half decades since the Mahakali Treaty. The sharing of water from the Mahakali River between Nepal and India has not been settled yet, according to the Ministry of Energy, Water Resources and Irrigation.

Indian Prime Minister Modi termed the Pancheshwor project a 'game-changer project' and expressed commitment that the long-awaited project would be advanced hereafter. With this, it has spread hope that DPR would be prepared now.

Modi further said a discussion was held on multi-dimensional relations between India and Nepal during the meeting with PM Deuba-led Nepali delegation. He also shared that both countries were ready to build partnerships and cooperation in the energy sector.

The Indian PM reiterated that the Pancheshwor project stalled for a long would be expedited.

Other issues relating to energy and water resources including India assisting Nepal with the purchase of hydropower produced in Nepal and the promotion of clean energy also figured in the high-level meeting. After the Pancheshwor project was featured in the delegation meeting and got importance, it is expected that even the disputed issues on it would be settled soon.

As per the Mahakali Treaty, both countries have already agreed on the five percent of water to be released for the livelihood of the upper basin. The Pancheshwor project is to be constructed with the joint investment of Nepal and India.

It was already agreed to make additional decisions relating to flood control and irrigation. The mega hydropower project is aimed to produce 1,480 MW of electricity to benefit both countries.

Interestingly, when the Mahakali Treaty was done, it was stated that DPR for Pancheshwor Hydropower Project would be prepared within six months.