‘Pancheshwar should not be extended under any pretext’

Former Indian Ambassador to Nepal Ranjit Rae has said that the Pancheshwar hydropower project should not be extended under any pretext. Speaking at a discussion program organized by the Nepal Institute for International Cooperation and Engagement, the former ambassador said that there should be no delay in Pancheshwar as the effects of climate change are beginning to be seen in hydropower.

He said that if the project can be completed on time, it will be beneficial in all aspects and the more it is delayed, the more losses will be incurred. Saying that both Nepal and India are at loss if Pancheshwar is not made, former ambassador Rae asked to solve the problem. He argued that the cost of the project has increased due to the delay. Rae says that Nepal and India need to look at hydropower strategically rather than as just a resource.

The dream of Pancheshwar being shown to Nepali people for 67 years still remains undecided. It is said that out of more than 500 disagreements in the Detailed Study Report (DPR) of both countries, only a couple of issues have not been agreed upon. Both countries have not been able to present a common opinion, mainly regarding the utility of water. The work of Pancheshwar is not progressing as both countries seem stuck in their own interests rather than in the bilateral interests of water utilization.

The Central Commission of India identified the Pancheshwar project on the Mahakali river in 1956. In 1978, a joint group of experts from both Nepal and India was formed and it was decided to conduct a detailed field investigation independently.

In 1988, the Pancheshwar Multipurpose Project Office was established under the Ministry of Water Resources. In the previous year, with the financial support of the International Development Commission, on-site exploration work was conducted in Nepali territory.

In 1991, it prepared a report on the Pancheshwar Multipurpose Project, which included the Pancheshwar High Dam and Rupaligad Retention Dam. It is proposed that 6,480 megawatts of rock fill dam with a height of 315 meters in Pancheshwar and 240 megawatts in 83 meters height of re-regulating dam in Rupaligad can be produced, generating a total of 6,720 megawatts of electricity. 

Based on that study, Nepal prepared a detailed project report in 1995. According to the latest information from the Ministry of Energy, the total production capacity of Pancheshwar is about five thousand megawatts.

After the conclusion of the treaty between the Government of Nepal and the Government of India regarding the Mahakali River Sharda Barrage, Tanakpur Barrage and Pancheshwar Project on 12 Feb, 1996, the basis for jointly operating this project with bi-national investment was prepared.

On 24 Nov 2009, it was agreed to form the Pancheshwar Development Authority at the 5th secretary-level meeting of the Nepal-India Joint Water Resources Committee. The meeting also prepared the agenda of the Authority (PDA). The agenda was approved by the Government of Nepal and sent to the Government of India.

The first meeting held in Kathmandu in Oct 2014 approved the statute of the authority. The authority’s meeting held in New Delhi in Nov 2014 declared the Indian government-owned company Wapcos Limited to prepare a joint DPR based on the DPR prepared separately by the two countries. In the year 2016/17, there was a disagreement saying that the joint DPR submitted by Wapcos was against the Mahakali Treaty.