Pancheshwar Multipurpose Project: Nepal’s Portion of Water S.B. Pun Abstract: On September 20, 1996 an overwhelming 96.5% of the members present at the Joint Session of the Nepalese Parliament hurriedly ratified the Mahakali Treaty to fulfill the requirements of Article 126 of the 1990 Constitution of Nepal.The then Prime Minister Sher Bahadur Deuba and Water Resources Minister Pashupati SJB Rana provided CPN-UML General Secretary Madhav Kumar Nepal and CPN-UML Mahakali Study Team Coordinator KP Sharma (Oli) written replies on the “equal sharing” of the Mahakali waters. However, despite the lapse of 15 years, the two critical clauses: i) “...equal entitlement in the use of Mahakali waters without prejudice to their respective consumptive uses...,” and ii) “...precludes the claim, in any form, by either Party on the unutilized portion of the shares of the waters...” still remain obfuscated and clouded in mist. Is “equal entitlement” (50 percent each) considered after deducting the respective consumptive uses as interpreted but later withdrawn by Minister Rana? Or is this “equal entitlement” (50 percent each) considered prior to deducting the consumptive uses as interpreted by Secretary General MK Nepal and then applying the clause “without prejudice” to their re- spective consumptive uses? No attempts appear to have been made by Nepal to elicit the Government of India’s interpretations on this vital issue. The Ganges basin supports a massive over 523 million people; i.e., 450 million in India, 45 million in Bangladesh, and 28 million in Nepal. With India’s economy growing consistently at a high 8 to 9% annually, the quality of life of her people is definitely on the rise. This will invariably mean drastic increases in her per capita consumption of water. With Nepal contributing over 72% of the dry season flows of the Ganges, India’s eyes and ears are on Nepal either in the form of “...without prejudice to their respective consumptive uses...” or “...precludes the claim, in any form, ...the unutilized portion of the waters...” However, Nepalese governments from the Panchayat era perceived water, whether by design or otherwise, as a mere secondary component of hydropower. Despite the full knowledge that water has become a scarce diminishing resource, the Nepalese Governments continue to be mesmerized by hydropower. This is manifested by the government unveiling in a span of two years her grand dreams of 10,000 MW in ten years and 25,000 MW in twenty years. This article attempts to delve into the intrica- cies of the Mahakali waters as expounded by Prime Minister SB Deuba’s government during the extremely hurried ratification the Mahakali Treaty in 1996. Key words: Pancheshwar Multipurpose Project, Mahakali Treaty of 1996, India, Nepal Foreword year later, Nepali Congress party politicians, under the Much has been said and written on what Nepal can CPN-UML led government, resorted to an emergency earn from export of power to India from the 6,480 MW Caesarian-like operation of the Ministry of Water Re- Pancheshwar Multipurpose Project. In the aftermath sources to deliver two wonder babies – the Ministry of of Mahakali Treaty ratification in September 1996, Energy and the Ministry of Irrigation. The Nepali Con- Water Resources Minister Pashupati S.J.B. Rana, at gress politicians further unveiled a master plan even far a press briefing, claimed an annual revenue stream of more grandiose than its predecessor, the 25,000 MW of Rs 21 billion through electricity export to India. K.P. hydropower in 20 years!3 While billions of Rupees with Sharma (Oli) (incidentally, Coordinator of CPN-UML’s tens of thousands of megawatts were being rolled out in Mahakali Treaty Study Team) claimed a far more as- the “second richest water resources endowed country in tronomical figure of Rs 120 billion annually. Fourteen the world,”4 sadly not a word was uttered about water years later, in 2010, Prime Minister M.K. Nepal rolled itself – that valuable diminishing and scarce resource in out yet another figure of Rs 45.88 billion annually.1 the Indo-Gangetic basin. While our political masters competed over the billions of Rupees, another form of competition in megawatts Whether by design or otherwise, electricity has al- has recently raised its head in the political arena. ways been projected as the glamorous component of Pancheshwar, which would raise Nepal’s living stan- In 2007 (2065 VS), the then government, led by the dard to the level of Bhutan’s ‘Gross National Happiness’ United-CPN Maoists with its CPN-UML administered (GNP). Little, or in fact nothing, has been said or writ- Ministry of Water Resources, unveiled the grand 10,000 ten on the unglamorous water component of Panchesh- MW of hydropower in 10 years Master Plan.2 Barely a war Multipurpose Project.5 48 HYDRO NEPAL ISSUE NO. 8 JANUARY, 2011 This article attempts to delve into the complexities and stead that Nepal and India are entitled half-half waters obfuscation of Nepal’s portion of water in that much of the common Mahakali river. M.K. Nepal demanded trumpeted ‘sun to rise from the west’ Mahakali Treaty. that the government of Nepal get this same interpreta- tion from the Government of India.7 Mahakali Treaty Ratification Night: September 20, 1996 Water Resources Minister Rana replied that the govern- ment wanted to transform the Tanakpur problem into In the late evening of September 20, 1996 (Ashwin 4, opportunity by tying it with Pancheshwar to achieve a 2053 VS on the Nepalese calendar), Ram Chandra Pou- “new break-through” in water resources development del, Chairman of the Joint Session of the two Houses of by opening a “new door” for the export of electricity. Parliament, the meeting giving the floor first to Mad- On the Kosi and Gandaki river treaties raised by Gen- hav Kumar Nepal, leader of main Opposition Party eral Secretary M.K. Nepal, Minister Rana agreed that and General Secretary of Communist Party of Nepal, Nepalese nationalism did cry over those treaties then; the United Marxist Leninist (CPN-UML).5 M.K. Nepal but that very nationalism now is all smiles – precious harked back to the Nepal-India treaties of Kosi (AD smiles – on the Mahakali Treaty. 1954) and Gandaki (AD 1959) concluded by M.P. Koira- la and B.P. Koirala, respectively, that the Nepalese now Regarding “existing consumptive uses” of the Mahaka- reflect upon with pain and sorrows. He stated that the li Treaty, Article 3, Minister Rana referred to Prime Nepalese cannot forget the series of Indian objections Minister Sher Bahadur Deuba’s letter of September that blocked international funds for implementing the 26, 1996 (Bhadra 26, 2053 VS) to CPN-UML General Kankai, Babai and Sikta irrigation projects. M.K. Nepal Secretary M.K. Nepal, wherein the Prime Minister had further stated that with the then Prime Minister, G.P. already explained that both the countries have “equal Koirala, condoning India’s unilateral construction of entitlement” to the Mahakali waters. After completion Tanakpur Barrage on the Mahakali River through the of the Pancheshwar Project, Minister Rana stated that Memorandum of Understanding (MOU), the previous both countries “have equal entitlement to the Mahakali Nepalese wounds have been reopened. M.K. Nepal also waters without prejudice to their existing consumptive pointed out that it was during the repressive Panchayat uses” (emphasis added). Minister Rana added that this era government regime that Indian security forces oc- equal entitlement to all the Mahakali waters was the cupied Darchula’s Tinkar and the secret 1965 Nepal- government’s stand, implying that anything presented India Security Treaty was signed. earlier contrary to this would be inadmissible. Minis- ter Rana then proposed to the House an understanding M.K. Nepal then revealed that his party, the CPN-UML, that was prepared with the consensus of the CPN-UML, had received the following political commitments from wherein the Detailed Project Report (DPR) preparation His Majesty’s Government of Nepal (HMGN) and In- of Pancheshwar Multipurpose Project will be based on dia, that:6 the Prime Minister’s letter of September 11, 1996 (Bhad- 1) The Mahakali is basically a border river, ra 26, 2053 VS), to the CPN-UML General Secretary; 2) both countries have equal rights to the Mahakali that is, that the four understandings will be undertaken waters, as ‘Rashtriya Sankalpas’ (National Strictures)8 and that 3) Nepal will sell India a portion of her electricity gen- an All Party Parliamentary Monitoring Joint Commit- erated from Pancheshwar and the price of energy tee will be constituted to provide an overall guidance to will be determined on the avoided cost principle, the government. 4) decision on DPR (Detailed Project Report) will be made through national consensus of an All Party Chairman R.C. Poudel then called for voting at around Committee, 10:30pm of September 20, 1996 (Ashwin 4, 2053 VS). 5) members to the Mahakali River Commission will be Two hundred and twenty Members of Parliament (MPs) nominated through national consensus, and voted for the motion to ratify the Mahakali Treaty, 6) the entire western Nepal-India border will be de- only eight MPs voted against the motion, and 31 MPs marcated scientifically within a stipulated period abstained.9,10 As the members present at the joint ses- of time and the Indian military post removed from sion of two Houses were 228 and as an overwhelming Darchula District. 220 members (96.5% of the members present) voted M.K. Nepal called the Water Resources Minister Pash- for the ratification of the Treaty, this easily fulfilled the upati S.J.B. Rana’s interpretation of Mahakali Treaty’s 66% requirement stipulated by Article 126 of the 1990 Article 3 totally faulty.