6,480 MW Pancheshwar Multipurpose Project Six Vital Issues on Pancheshwar to Be Addressed Before Cashing Modi’S One Billion US Dollars SB Pun
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6,480 MW Pancheshwar Multipurpose Project Six Vital Issues on Pancheshwar to be Addressed before Cashing Modi’s One Billion US Dollars SB Pun Abstract: Prime Minister Narendra Modi’s visit to Nepal in August 2014 was instrumental in reinvigorating the stalled 6,480 MW Pancheshwar Multipurpose Project. In particular, the one billion US Dollar soft loan for infrastructures that Modi offered to Nepal has generated much enthusiasm. As the Mahakali Treaty was ratified in September 1996, and as public memory is short, this article reverts back 18 years ago into the heady days when the Water Resources Minister, Pashupati SJB Rana, publicly claimed that the sun would now begin to ‘rise from the west’! At that time, even the leaders in the opposing camp (the CPN-UML), started to count their chickens in billions and billions of rupees accruing from the sale of electricity to India. Today, that ‘Som Sharma euphoria’ has again started to percolate among our political leaders. The article, hence, poses six vital issues that need to be ‘fixed’ before the Pancheshwar Multipurpose Project can begin to taxi along the runway: i) validity of Rashtriya Sankalpas/national strictures; ii) re- constituting the all-party Parliamentary Monitoring Joint Committee; iii) export of energy and its pricing principle; iv) formation of Mahakali River Commission; v) equal sharing of Mahakali waters after the completion of the Pancheshwar Project; and vi) determining the origin of Mahakali River. The author believes that until these vital issues are fixed in an amicable and good faith manner, the viability of the Pancheshwar Multipurpose Project will again be in doubt ! Key words: Mahakali Treaty, Panchameshwar Multipupose project, Nepal Background The newly elected Prime Minister of India, Narendra Development Authority (incidentally another PDA!) and Modi, landed on a two day visit to Nepal in early August the agreement to establish a PDA within six months have 2014. In typical ‘Veni, vidi, vici’1 style, Prime Minister been signed, sealed, and delivered. After finalization Modi enthralled the Nepalese from the high Honorable of detailed project report (DPR), the Pancheshwar Members of the Parliament down to the very ordinary Multipurpose Project is set to begin implementation Nepalese on the streets. The Modi ripple–in particular ‘within one year.’ This article attempts to raise a number the one billion US Dollar soft loan waved in front of the of vital issues on Pancheshwar vis-à-vis Mahakali Treaty Honorable Members –travelled far and wide. That ripple that to the Nepalese public still remain vague, obfuscated, reached the banks of Mahakali River at Pancheshwar and unsettled. Although the issues may stem from the culminating in the following joint press release from the 1996 ratification of the Mahakali Treaty, they still need governments of Nepal and India: to be addressed transparently in ‘good faith and trust’ The two Prime Ministers witnessed the signing of the by both the countries. Otherwise, the Pancheswar Exchange of Letters regarding Terms of Reference of project could again falter and float listlessly, despite the the Pancheshwar Development Authority. They agreed availability of one billion US dollars. that the two Governments would set up the Authority within 6 months and finalize the DPR of Pancheshwar Formation of Parliamentary Monitoring Joint Development Project and begin implementation of the Committee Officially Conveyed to Government Project within one year. of India (GoI) by Government of Nepal (GoN) The Pancheshwar Multipurpose Project was the Public memory is extremely short. So, for the benefit flagship item of the 1996 Mahakali Treaty. Except for of discussion, let us return to 1996. After the Mahakali a tiny minority, an overwhelming majority of the Joint Treaty was ratified on September 20, the Ministry of Session of the two Houses of Parliament ratified the Foreign Affairs/GoN on November 22 officially informed Mahakali Treaty in a historic2 fashion on the night of the Embassy of the Republic of India at Kathmandu September 20, 1996. In an overt effort to pat their own about treaty ratification ‘as per the provision of the backs, party leaders publicly made various tall claims3 Constitution4’ of Nepal. The Nepalese Ministry also about the billions of rupees that would accrue to Nepal requested the Indian Embassy to make necessary from electricity export to India. In fact, a gleeful and arrangements for the exchange5 of instruments of euphoric Water Resources Minister, Pashupati SJB ratification so that the treaty could come into force. The Rana, even claimed that the sun would now begin to following is a part of that official letter highlighting the ‘rise from the west’. However, the Pancheshwar flagship terms of reference of the Parliamentary Monitoring Joint faltered and began to float listlessly, directionless for the Committee and the eight important Nepal-India related last 18 years. issues that were discussed by the parliament while Suddenly, the Modi magic-wand has cranked alive ratifying the Mahakali Treaty: the engines of the listless Pancheshwar Multipurpose “The Ministry would like to inform that a Project. The Terms of Reference for the Pancheshwar Parliamentary Monitoring Joint Committee has been HYDRO NEPAL ISSUE NO. 15 JULY, 2014 7 formed under the chairmanship of the Rt. Hon. Speaker6 House of Representative, 1992 prevailing at that time.’ of the House of Representatives to give guidance to [the] GS Chintan queried10 the Ministry of Energy on this Nepalese side, during the preparation of the detailed same topic in December 2009 (Mangsir 23, 2066). project report, with a view to monitor the process The Ministry skillfully passed the buck by stating reflecting the resolution and commitment as expressed “this Ministry has no record of authoritative information by the parliament in safeguarding the national interest on the passing of Sankalpa Prastav as precondition by of Nepal. The Terms of Reference of the Committee were the then Parliament prior to the ratification of treaty, as follows: please avail all required information through the 1. export of energy and its pricing principle; Legislative Parliament Secretariat.’ The Parliament 2. formation of Mahakali River Commission; Secretariat replied in the usual circumventing manner 3. equal sharing of waters of the Mahakali River after on August 2010 (Shrawan 25, 2067) writing that “prior the Pancheswor project; and to ratification of treaty the then Parliament, as per the 4. Status of the Mahakali River. regulations of Parliament, has no officially registered In addition to advising about the formation of the Sankalpa Prastav about the above subject. Before Parliamentary Monitoring Joint Committee to look into ratification of the above treaty by the Joint Session of the above issues, the ministry would also like to draw the Parliament, records indicate Water Resources Minister attention of the Embassy to a number of issues on Nepal- Pashupati Shumsher JBR on behalf of the government India relations and other matters on the Mahakali Treaty with the concurrence of the main opposition CPN-UML and the utilization of the waters of Mahakali River, such presented the “sahamatikabunda/points agreed as: on.”’What does all this long-winded legal words mean 1. determination of the price of energy to be exported to in the end? Did Prime Minister SB Deuba with his India on the basis of the principle of avoided cost; Water Resources Minister Pashupati SJB Rana, Foreign 2. determination of the source of the Mahakali River; Minister Dr. PC Lohani and the CPN-UML General 3. withdrawal of the Indian military personnel from the Secretary MK Nepal merely pass half-baked strictures Nepalese territory; (sankalpas) in the Parliament? 4. return by India to Nepal of the excess land (36 acres7) So before kick-starting the Pancheshwar Multipurpose in Brahmadev Mandi/Tanakpur between pillar Nos. Project, the GoN must immediately declare whether 3 and 4; the four strictures (sankalpas), supposedly passed by 5. review of the 1950 treaty; the Joint Session of the two Houses of Parliament, 6. alternate transit route to Nepal to and through categorically exist or not ! Bangladesh; 7. developing river navigation for Nepal for trade All Party Parliamentary Monitoring Joint purposes; and Committee 8. monitoring the Nepal-India border. Though Nepal’s Foreign Ministry mentioned the In the light of the generally positive spirit shown by Parliamentary Monitoring Joint Committee, it was, the Indian side towards the issues mentioned above, the in fact, an All-Party Parliamentary Monitoring Joint Ministry hopes that the Nepalese concerns would be Committee that was constituted to provide an overall taken into account in a friendly and positive manner by guidance to the government11. the Government of India.” The Terms of Reference of the Committee were as The Mahakali issues posed in the above official letter follows: by the GoN to the GoI in 1996 are self-explanatory and 1. export of energy and its pricing principle; of vital importance for Nepal. While kick-starting the 2. formation of Mahakali River Commission; 18 year old Pancheshwar Multipurpose Project, the 3. equal sharing of waters of the Mahakali River after Nepalese public has the right to be informed about the the Pancheswor project; and present status. This article limits its discussion to the 4. Status of the Mahakali River. following vital six8 issues, four of them drawn from the Over a four year period from November 1996 to Terms of Reference