India Nepal Relations: Nepal has signed an agreement with Indian company NHPC Limited to set up a hydroelectric power plant in its country. Nearly four years after China withdrew from the projects, Nepal has entrusted the Indian company to complete two power projects, the West Seti Hydropower Project and the Seti River Hydropower Project.
NHPC to develop two hydroelectric projects in Nepal
State-owned NHPC plans to develop two hydroelectric projects of 750 MW and 450 MW each in Nepal. The company has signed an agreement with Nepal for this on Thursday. The combined cost of both the projects is estimated to be around USD 2.1 billion. NHPC Limited has signed a Memorandum of Understanding (MoU) with Nepal Investment Board (IBN) to develop 750 MW West Seti and 450 MW SR-6 hydroelectric projects in Nepal, the company said in a statement.
NHPC's credibility will increase
The MoU was signed on August 18 in Kathmandu by NHPC Chairman and Managing Director AK Singh and IBN CEO Sushil Bhatta, the statement said. The Prime Minister of Nepal Sher Bahadur Deuba was also present on the occasion. Deuba said that this agreement will prove to be important in enhancing energy cooperation between Nepal and India. He also appreciated India's cooperation in the development of Nepal. At the same time, AK Singh said that through these projects, the reputation of NHPC as a global hydropower company will increase.
West Seti Project: There was dispute between China and Nepal on many issues
The Chinese company took over the West Seti project in 2012, but abruptly withdrew 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, within two years, the company left the job. There was a dispute between China and Nepal on many issues regarding the West Seti project. In this, after the formation of electricity, its purchase rate was prominent. The Chinese company had said that the electricity rate given by Nepal was insufficient. Whereas, Kathmandu was 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 exit the project.