Nepal sends new PTA draft for India’s consent
KATHMANDU, AUG 01 -
A new Power Trade Agreement drafted by a three-member cross-party panel has been forwarded to India for approval.
The draft that incorporates inputs from the Ministry of Energy is focused on power trade between the two countries. It says that the power tariff would be determined by the market while third parties would not be barred from a power deal in Nepal and India.
After the panel comprising Finance Minister Ram Sharan Mahat from the Nepali Congress, Bhim Rawal from the CPN-UML and Narayan Kaji Shrestha from the UCPN (Maoist) agreed on the draft, it was forwarded to the heads of their parties for consent. The draft was forwarded to the Indian side through the Ministry of Foreign Affairs.
If India agrees to Nepal’s proposal, it should be approved by the Cabinet in Kathmandu.
Though the panel had agreed not to mention anything on power development in the draft, Shrestha charged the Energy Ministry with inducting it in the PTA draft. The panel had suggested inducting a line, “to promote the power sector, the two sides will promote joint ventures on agreed terms in accordance with the local law,” in case PTA negotiations would not make a headway during Indian Prime Minister Narendra Modi’s visit. But Energy Ministry officials had inserted the clause in the PTA draft without consulting them.
While the major parties are one on signing the PTA during Modi’s visit, they seem to be divided over the project development agreement ( PDA ) plan for Upper Karnali Project. The Upper Karnali PDA negotiation is in final stage.
The parties and the government are running out of time to finalise the PDA which needs clearance from the Investment Board Nepal, the political leadership and the Cabinet. Some leaders in the all-party meeting called by PM Sushil Koirala on Thursday sought parliamentary approval for both PTA and PDA . “We have no time for House approval. After political consensus, if time permits, it will be approved by the Cabinet and presented to the House later,” said a minister.
According to Foreign Ministry officials, agendas were yet to get final shape on Thursday. The ministry is undecided whether political consensus is necessary for a deal. “The Foreign Ministry has asked the political leadership not to sign any deal in haste and face controversy in future,” said an official.
On Thursday, submitting a four-point demand, an alliance of 33 parties asked the government not to sign any energy-related agreement with India urgently. The alliance is against reaching any deal with India such as PTA or PDA or security matters.
Source: The Kathmandu Post
