Power deals ‘not to be signed’
KATHMANDU, AUG 03 - The much talked about power trade agreement (PTA) between Nepal and India and power development agreement (PDA) with India’s GMR are unlikely to be signed during Indian Prime Minister Narendra Modi’s visit.
With ruling parties divided, the Cabinet on Saturday informally agreed to complete the signing of both the PTA and the PDA within the next one and a half months.
Highly placed sources said the Cabinet agreed on Saturday that the joint-press communiqué would mention “PTA and PDA will be done within one and a half months” if the Indian side agrees.
The prime ministers of the two countries will direct concerned officials to complete the negotiations within six weeks as agreed at the foreign ministers’ level last week, said Minister for Law and Justice Narahari Acharya.
Earlier on Saturday, a
meeting of the Investment Board Nepal (IBN) board failed to endorse the PDA deal reached between the IBN and the GMR ITD Consortium for the Upper Karnali Hydropower Project.
The IBN and India’s GMR ITD Consortium had ended protracted negotiations to reach a PDA for the 900 MW project on Friday, aiming to sign a final agreement during Modi’s visit.
“Some ministers raised questions over the impact of Upper Karnali on the irrigation projects downstream,” said a minister who attended the meeting. “The PDA with GMR was postponed as some study is necessary before the deal.” Sources say a section in the Nepali Congress was also not keen to have the PDA deal during Modi’s visit.
Coalition partner CPN-UML too was non-committal over the PDA. On Saturday, UML Chairman KP Sharma Oli said at the UML Parliamentary Party meeting that the government should not sign the PDA for Upper Karnali in haste.
“Power development agreement is necessary but we have yet to go through the PDA text,” UML lawmaker Prakash Jwala quoted Oli as saying.
The IBN team made a detailed presentation on the PDA reached with India’s GMR ITD Consortium at the board meeting chaired by Prime Minister Sushil Koirala. However, some ministers sought additional time to discuss the PDA deal.
Industry Minister Karna Bahadur Thapa, an IBN board member, said further study and consultation are necessary before signing an agreement with GMR. “It’s a regular process and we can finalise it even after the Indian PM’s visit,” said Thapa.
The Cabinet also decided to form a committee headed by National Planning Commission Vice-chairman Govinda Raj Pokharel to study the PDA document to see whether any clauses require amendment.
The committee has got to submit its report with suggestions at the earliest. The first meeting of the committee held on Saturday decided to submit its report within three weeks.
“We will also gauge the opinion of ministries regarding the PDA document,” said Pokharel. Other members of the committee are the chief secretary, central bank governor and secretaries of energy, irrigation, environment, land reforms, forest and finance ministries.
Source: The Kathmandu Post
