The Detailed Project Report (DPR) of the much-talked-about Pancheshwar Multipurpose Project is unlikely to be completed by the upcoming Nepal visit of Indian External Affairs Minister Jaishankar. India’s External Affairs Minister is coming to Nepal in the first week of January, according to a source at the Ministry of Foreign Affairs.
The Nepal government is making preparations for the upcoming visit of India’s External Affairs Minister. The issues related to energy will get top priority during his visit, sources have said. Pancheshwar which has been the talk of the town for the last 26 years will not be the agenda for discussions during the period.
Even though Nepal and India agreed in principle to finalize the DPR within three months during Prime Minister Pushpa Kamal Dahal ‘Prachanda’’s India visit (May 31 to June 3), agreements are to be reached on some technical issues.
Following a meeting with the Prime Minister of India, Narendra Modi, Prime Minister Dahal had said that the DPR would be finalized in three months and a modality of investment in one year.
Even though discussions were held on the DPR prepared by an Indian company in the fifth meeting of the team of experts on Pancheshwar Multipurpose Project, some technical issues are yet to be finalized, said Joint Secretary Nabin Raj Singh at the Ministry of Energy, Water Resources and Irrigation.
“The report submitted by the consultant WAPCOS was discussed in the fifth meeting of the team of experts,” said Singh, who has also been the head of the Pancheshwar Multipurpose Project.
“The sixth meeting of the team of experts is being prepared soon”, he said, “If there is an agreement, the DPR will be finalized.”
The Ministry of Energy will inform about the new developments during India’s External Affairs Minister’s Nepal visit.
“Some DPR works will have to be completed by the expert group. We will update on the progress of the project,” Joint Secretary Singh said.”
He said that even though the water issue has been finalized by the treaty, it is yet to be finalized who will enjoy how much slice of the pie.
In 2052 BS, Nepal, and India had agreed to jointly operate the project with the bilateral investment. The agreement had been signed by then Prime Minister Sher Bahadur Deuba and his Indian counterpart Prime Minister PV Narasimha Rao, which spelled out that the DPR had to be prepared within six months. However, the technical issues of the DPR are yet to be agreed upon.
There is a possibility that Nepal and India will sign an agreement on the procurement of 10,000 megawatts during the External Affairs Minister’s Nepal visit. The Council of Ministers of India has already decided to import 10,000 megawatts of electricity from Nepal.
According to a study, 6,480 megawatts of electricity will be generated through Pancheshwar Multipurpose Project. There will be 12 units – each one generating 540 megawatts.
According to a report prepared in 1971, 1,000 MW was estimated to be generated from this project but in the 1991 report, it was stated that 6,480 MW could be generated provided a 315-meter high dam was built.
Nepal prepared the DPR for this project in 1995. On November 24, 2009, a joint secretary-level meeting of the Ministry of Water Resources of Nepal and India formed the Pancheshwar Development Authority (PDA) and agreed to prepare the DPR.
Rs 336 billion was estimated to be invested in the Pancheshwar High Dam and Rupaligad Re-regulating Dam project in the initial phase. Nepal has to invest a total of Rs 126 billion to 130 billion for a decade-long construction of the project (with Rs 12 to 13 billion annually).
According to the estimation, Nepal can earn Rs 34.5 billion annually. Since this project is a multipurpose project, Nepal might earn Rs 53 billion per year through fish farming, carbon trading, irrigation, ecotourism, medicinal herbs, and fruits.
Two big reservoirs need to be constructed. Discussions are underway to prepare its EIA report. According to the report, the project will incur a loss of Rs 138.5 million (from agricultural products) annually and 22, 765 people from 2,926 households will have to be displaced.
