By Sanjaya Neupane
KATHMANDU, Sept 7, - Indian ambassador to Nepal Shiv Shanker Mukherjee said on Thursday that India is planning to provide support for the development of a hydropower project in the range of 100-150 megawatt in Nepal.
Speaking at a two-day Indo-Nepal Power Summit that started in Kathmandu today, Mukherjee said, "We are prepared to consider providing support, through an appropriate financial model and corporate structure, for the development of a project in the range of 100-150 megawatt for Nepal's own use."
Mukherjee also said that India would provide funds for rehabilitating and upgrading the Devighat hydroelectric project, which was built 25 years ago with the Indian assistance.
Indian entrepreneurs expressed their readiness to invest in hydropower projects in Nepal to cover the increasing shortfall of power in India. Indian power producers, investors and distributors however said there should be conducive atmosphere in Nepal for investment.
"We will be making an announcement within a month to invest in a 200 to 400 megawatt project in Nepal," said Abinash Shah, vice-chairman of GMR Company. It is the first private company to invest in power sector in India. "But there should be a conducive atmosphere for investment," Shah added.
He also pointed out the need for government commitment to help investors make such investments.
He sought government help in technical matters such as land acquisition, effective regulatory machinery and transparency in granting license. He also said the government should extend the period of power production from 30 years to 45 years.
GMR is also distributing power to Chennai and Andhra Pradesh. The company, which has its headquarters in Mumbai, started generating 220 megawatt power from Mangalore in 2001.
Similarly, RK Narayan, representative from JAYPEE group India, said that Nepali private sector can also be included in the investment. The group is currently producing 8190 megawatt power in India.
The Indian companies are ready to invest in Nepal, whether alone or jointly with local investors.
Managing Director of PTC India Ltd, TN Thakur opined that investments in hydropower in Nepal and high voltage transmission connection to India should be initiated simultaneously.
Participants said the presence of deputy prime Minister, Khadga Oli, Finance Minister Ram Sharan Mahat and other high level bureaucrats has boosted the morale of Indian power producers.
Published in The Kathnandu Post on September 8, 2006Linnk: http://www.kantipuronline.com/kolnews.php?&nid=85411
