Question : POWER SHARING WITH NEPAL

(a) whether the Government has agreed to provide 150 MW of power to Nepal in addition to the 120-140 MW of power being exported by the country at present;

(b) if so, the details thereof;

(c) whether both the countries have agreed for setting up a hydropower project in Nepal;

(d) if so, the details thereof along with the total amount of expenditure involved therein;

(e) whether any modalities have been arrived between the two countries for sharing the cost of the project and also sharing of power once the said project starts its production and if so, the details thereof; and

(f) the other steps taken/being taken by the Government for more consolidation of the power sector cooperation between the two countries?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY ( SHRI PIYUSH GOYAL )

(a) & (b) : Yes, Madam. The Government of India has agreed to augment electricity export to Nepal from its current level. In addition to the current supply, the Government of India in November, 2014, agreed to supply 70 MW of power to Nepal in view of the SAARC Summit there.

(c) to (e) : The Pancheshwar Development Authority (PDA) has, now, been constituted jointly by India and Nepal for implementation of the Pancheshwar Multipurpose project on river Mahakali. The Terms of Reference of the Authority includes preparation of a Detailed Project Report which should be acceptable to both the countries and addressing all the issues including cost and benefit. In addition, the Project Development Agreement (PDA) for the 900 MW Arun–III hydropower project, was signed between the Indian PSU M/s SJVN Limited and the Investment Board of Nepal in November,2014.

(f) : An agreement on `Electric Power Trade, Cross Border Transmission Interconnection and Grid Connectivity ` was signed on the 21st October,2014. In addition, Government of India has extended two Lines of Credit (LoCs) of USD 100 million and USD 250 million in 2007 and 2011 respectively to Government of Nepal, part of which is being used for development of hydropower. Recently, in November 2014, Government of India has approved another LoC of USD 1 billion to Government of Nepal, part of which is to be used for hydropower also.