Urja Khabar
Kathmandu: Nepal and India are set to discuss ways to expedite the long-delayed Pancheshwar Multipurpose Project during Prime Minister Balen Shah’s upcoming state visit to India, scheduled to begin on November 22.
The Pancheshwar Dam project is expected to be among the five key issues on the agenda for bilateral talks, according to officials of the Government of Nepal. Indian media have also quoted Uttarakhand Cabinet Minister Satpal Maharaj as saying that discussions on the project will be held with the Nepalese Prime Minister.
Preparations are underway in Uttarakhand for Shah’s proposed visit. According to Indian media reports quoting Minister Maharaj, discussions will also cover border trade, infrastructure development, including a proposed dry port in Mahendranagar, and tourism expansion in the Terai region.
The Pancheshwar Multipurpose Project, planned on the Mahakali River, has long been a key component of Nepal-India cooperation. However, its implementation has remained stalled for decades due to differences over construction costs, water resources and the sharing of project benefits.
Conceived under the 1996 Mahakali Treaty, the project is designed to support hydropower generation, irrigation and flood control in both countries. Its implementation is also expected to strengthen water and energy cooperation between Nepal and India.
In recent years, the two countries have agreed to accelerate efforts to finalise the project's Detailed Project Report (DPR). They have reportedly narrowed their differences over construction costs, with discussions indicating that Nepal would bear 25 to 30 percent of the cost, while India would cover the remainder.
However, the crucial issue of sharing benefits derived from water resources remains unresolved, continuing to hinder progress on the project.
The upcoming high-level talks are expected to provide an opportunity for both sides to address outstanding issues and advance negotiations on the long-pending project.
