India’s third project in Nepal
This is the third project being undertaken by India in the field of hydropower in Nepal. NHPC Ltd on Thursday signed a memorandum of understanding under which the company will carry out studies on feasibility, environmental impact, submergence area and construction cost for two projects West Seti (750 MW) and SR-6 (450 MW). . The estimated cost of both projects is $2.4 billion. Earlier, on two separate occasions, two Chinese companies backed out of projects after signing agreements.
The Chinese company left in 2017
China’s largest construction company for hydropower projects, Three Gorges International Corporation, was earlier supposed to work on the project, but Nepal terminated the agreement with it in 2017 during negotiations over terms. The Chinese company took over the West Seti project in 2012 but abruptly pulled out in 2018. Earlier in 2009, China National Machinery and Equipment Import and Export Corporation (CMEC) also signed a memorandum of understanding for a project, but the company walked out within two years.
China wanted to sell electricity at an arbitrary rate
The West Seti project was tasked with building Australia before China but that too fell apart. There was a dispute between China and Nepal over several issues regarding the Western Seti Project. After electricity was created in it, its purchase rate was prominent. The Chinese company had said that the electricity tariff given by Nepal is insufficient but Kathmandu is justifying it. It is being told that China wanted to sell electricity at an arbitrary rate but Nepal did not come under its pressure, after which the Chinese company thought it appropriate to withdraw from the project.
The Prime Minister of Nepal thanked
Earlier, Nepal’s Prime Minister Sher Bahadur Deuba approved NHPC’s proposal to study the 750 MW West Seti Storage Hydropower Project and the 450 MW Seti River-6 Hydropower Project in Far West Province. After last Thursday’s agreements, Prime Minister Sher Bahadur Deuba said, “During my recent visit to India, Prime Minister Narendra Modi and I emphasized the need to strengthen mutually beneficial bilateral cooperation in the area of cooperation in the power sector.” Even during the Prime Minister Modi’s visit to Lumbini, we had a fruitful discussion on the matter and I invited interested companies from India to develop the West Seti Hydroelectric Project.
Nepal will earn billions by selling electricity
Deuba thanked India for promoting the electricity market in Nepal. It is estimated that after the completion of this project, if Nepal uses its full hydro potential to sell electricity to India, it could earn up to Rs 31,000 crore per year in 2030, which is up to Rs 31,000 crore per year by 2045. 1.069 lakh crore may go up to Rs. is