GS Paper III

News Excerpt:

More than a month after India and Nepal signed the agreement on long-term power sharing, the two sides have not made progress on the stalled negotiations over the landmark Pancheshwar Multipurpose Project (PMP).

About the Pancheshwar Multipurpose Project (PMP):

• Pancheshwar Multipurpose Project (PMP) is a bi-national hydropower project to be developed in the Mahakali River bordering Nepal and India. 
• It is by far the biggest bilateral power project conceived between the two sides.
• The development of the project is covered under the integrated Mahakali Treaty signed between Nepal and India in 1996.
• Under this treaty, equal sizes of underground powerhouses of 3,240 MV will be constructed on each side of the Mahakali River in India and Nepal.
• Apart from generating electricity, the project will provide irrigation to 130,000 hectares of land in Nepal and 240,000 hectares in India in addition to other incidental benefits including flood protection.

Why the delay in detailed project report (DPR)?

• The two sides were expected to iron out differences over the detailed project report (DPR). Still, the necessary discussion within the Team of Experts under the Governing Body of the Pancheshwar Development Authority has not been held.
• After the Mahakali Treaty (1996), the two countries had prepared a separate DPR. India’s state-owned Water and Power Consultancy Services (WAPCOS) Ltd prepared and submitted the DPR in 2016 by merging the two reports. 
• The main contentious point of bilateral negotiation has been which country gets how much benefit from the multipurpose project, which aims at producing electricity and irrigating vast swathes of India and some areas of Nepal, besides controlling floods.
  • Kathmandu feels water is ‘white gold’ and India should pay Nepal for it. 
  • India cannot accept this claim as it challenges India’s understanding of other water-based treaties, including the Indus Waters Treaty with Pakistan.
• Still, the two sides are not on the same page on several issues of the joint DPR, consequently delaying the final report.

Probable Beneficial Impacts of PMP:

• Successful implementation of the Pancheshwar Multi-purpose Project will minimize energy shortages, control flood disasters, promote irrigation facilities, increase agricultural productivity, and help develop tourism and other commercial activities in Nepal and India. 
• The Detailed Feasibility Study Report shows that this project is one of the cheapest hydropower projects in the world in terms of cost against units of energy produced.
• India will generate more revenue from this project than Nepal.

What must be done?

• The discussion to kickstart the Pancheshwar project will require political courage and bureaucratic foresight on both sides.
• Both countries should focus on equitable sharing of benefits, respecting each other's interests and international water-sharing norms. 
• A joint technical committee should be formed to review the DPR, ensuring transparency and mutual benefit. 
• Resolving these issues will unlock the project's immense socio-economic benefits for both nations.

Conclusion:

The Pancheshwar Multipurpose Project holds significant potential to transform the energy landscape and enhance agricultural productivity in Nepal and India. Both countries must overcome their differences through constructive dialogue and cooperation, ensuring equitable sharing of benefits and sustainable development.