{"id":20009434,"date":"2014-11-27T13:30:43","date_gmt":"2014-11-27T13:30:43","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=9434"},"modified":"2020-10-01T20:44:37","modified_gmt":"2020-10-01T15:14:37","slug":"india-and-nepal-sign-deal-to-build-another-mega-dam","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/india-and-nepal-sign-deal-to-build-another-mega-dam\/","title":{"rendered":"India and Nepal sign deal to build another mega-dam"},"content":{"rendered":"

In less than six months, Nepal has signed deals with India to build 1,800 megawatts (MW) of hydropower \u2014about triple the amount of electricity currently produced in the country.<\/p>\n

During his second visit this year, India\u2019s prime minister Narendra Modi signed an agreement for the 900 MW Arun III dam at the sidelines of South Asian Association for Regional Cooperation (SAARC) meeting in Kathmandu this week, making India the largest hydropower developer in Nepal. In August this year, Modi signed a deal for the 900 MW Upper Karnali dam in western Nepal, the country\u2019s biggest foreign investment deal.<\/p>\n

The Arun III dam, planned in the eastern part of the country, is the most controversial hydropower project in Nepal\u2019s history. The World Bank withdrew financial support back in the 1990s after huge protests<\/a> from national and international NGOs.<\/p>\n

The Upper Karnali dam has also been mired in controversy,<\/a> with some political parties demanding the deal be scrapped.<\/p>\n

While hydropower has been the subject of intense debate and vehement protests in the past, now the deals have finally been signed, public reaction has been relatively muted.<\/p>\n

Many people believe it is Modi\u2019s hydro diplomacy that has allowed the two countries to push through proposals so fast and sign deals on projects that have been stalled for many years. Modi managed to reduce anti-Indian sentiment in Nepal during his first visit to the country in August this year. He also has tried to convince the frustrated Nepali public, reeling under severe energy shortages (suffering up to 15 hours of power cuts every day for years), that India is Nepal\u2019s most reliable hydropower ally.<\/p>\n

\u201cModi speaks the language of the people and in a way that normal Nepalis want to hear from an Indian leader. For years Nepalis have been frustrated by the Indian style of acting as a big brother,\u201d said Ratan Bhandari, an activist campaigning for peoples\u2019 rights to water.<\/p>\n

The projects still have their share of critics. A prominent group of activists, including former top bureaucrats, politicians and experts, issued an open letter to the prime ministers<\/a> of both countries in November, calling for the Upper Karnali project to be scrapped, but they have remained silent over the recent Arun III deal. Almost all of them were played a leading role in the protests against the dam in the 1990s.<\/p>\n

Interestingly, this group is not against hydropower development itself: they are calling for an even larger dam to be built \u2013 one that will generate four times as much electricity. \u201cWe are not against hydropower development but the government of Nepal has sold a diamond at the price of coal. So the Upper Karnali is not in the interest of Nepal or India,\u201d said Ratna Sansar Shrestha, member of the activist group that wrote the public letter and refer to themselves as the Civil Society Alliance for Rational Water Resources Development in Nepal.<\/p>\n

The letter states, \u201cAs the total potential capacity [of the site]stands at 4,180 MW, building a 900 MW run-of-the-river plant would produce relatively expensive 1,000 gigawatt hours (GWh) of energy every year, while a redesign with storage option would produce 9,000 GWh. The current option thus constitutes \u2018killing\u2019 the full potential of this site.\u201d<\/p>\n

But the government has become frustrated with drawn out debates and delays. \u201cWe have talked about the potential options for so long, the time has come to move forward and implement what we have at hand and what is possible. We can\u2019t afford to keep debating numbers,\u201d said senior bureaucrat in Nepal\u2019s Energy Ministry on the condition of anonymity.<\/p>\n

The government has not issued an official response to concerns raised by activists, but authorities have hailed the deals as a milestone achievement. \u201cWe see ample opportunities for Nepal to bring investment from India and we can offer assurance that we haven\u2019t compromised Nepal\u2019s interests by signing this document,\u2019 said Radha Gyawali, Nepal\u2019s Energy Minister, after signing the Arun III project on Tuesday.<\/p>\n

Nepal will get about 22% of the energy (about 200 MW) from each dam for free. The two projects will bring more than 200 billion Nepali rupees (US$2 billion) of Indian investment to Nepal.<\/p>\n

Modi suggested India will invest in more hydropower projects in Nepal in the future during his speech at the SAARC meeting on Wednesday: \u201cDo we want to face a future when someone looks down at us from Space and says that this is the world’s darkest corner? \u00a0Let us treat electricity as a commodity like any other that we invest and trade in. India will fully support these initiatives in the region\u201d.<\/p>\n

But given the current pace of the deals, many activists are worried \u00a0environmental and social impacts of hydropower will brushed aside by a government that ignores\u00a0their genuine concerns.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As Nepal signs a deal with India to build another 900 MW dam during the Indian prime minister’s visit to Kathmandu, concerns grow that the rush to develop hydropower is misguided<\/p>\n","protected":false},"author":20000200,"featured_media":20014465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757,50039903],"tags":[50040314,17073,554,50040707],"hashtags":[],"country":[20000111,20000113],"class_list":["post-20009434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-water","tag-dams","tag-energy-transition","tag-hydropower","tag-the-third-pole","country-india","country-nepal"],"acf":[],"yoast_head":"\nIndia and Nepal sign deal to build another mega-dam | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"As Nepal signs a deal with India to build another 900 MW dam during the Indian prime minister's visit to 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