More HIT than miss in India-Nepal ties

Source– The post is based on the article “More HIT than miss in India-Nepal ties” published in “The Hindu” on 22nd June 2023.

Syllabus: GS2- Bilateral groupings and agreements

Relevance– India and Nepal bilateral relations

News- Recently, Nepal Prime Minister Pushpa Kamal Dahal ‘Prachanda’ was on a four-day official visit to India.

What is the situation of the hydropower sector in Nepal?

Nepal has an economically viable potential of 50,000 MW of hydropower. But, until a decade ago, it had an installed capacity of barely 1,200 MW. It was dependent on electricity imports from India.

Today, Nepal has an installed capacity of 2,200 MW. During low demand, it can export power to India. A 400 KV transmission is now operational. In 2021, Nepal made a modest beginning by exporting 39 MW.

In the lean season, Nepal does import power from India, but its dependence has dropped from 20% to 10% during the last five years.

What is the status of hydropower cooperation between India and Nepal?

Both sides have finalised a long-term power trade agreement targeting the export of 10,000 MW within a 10-year time frame. The 900 MW Arun III project started in 2018 will be operational later this year.

Work has begun on a second high voltage transmission line between Butwal and Gorakhpur.

India has agreed to the Nepali demand for the facility to export electricity to Bangladesh using the Indian grid. It increases the prospects for sub-regional cooperation.

What is the status of bilateral cooperation in connectivity between two countries?

The Rupaidiha-Nepalgunj Integrated Check Post was inaugurated. Work has begun on the Sunauli-Bhairahawa integrated check post and an MoU signed for another at Dodhara Chandni.

There is a plan to extend the Jaynagar-Kurta railway line inaugurated last year.

After the Motihari-Amlekhgunj petroleum pipeline was operationalised in 2019, work has begun to extend it to Chitwan

What are irritants in the India Nepal bilateral relationship?

Agnipath scheme– It impacts the recruitment of Gurkha soldiers into the Indian Army’s Gurkha regiments, a practice that began in 1816 by the British Indian Army.

The Agnipath revision of the terms needs to be discussed between the two armies and the defence and finance officials concerned.

Kalapani boundary issue– It was deliberately stoked as a nationalist cause by Mr. Oli in 2020 when his position as Prime Minister was under threat. A constitutional amendment was pushed through, and Nepal’s map changed unilaterally.

Resolving this will need time because a lasting solution will need political wisdom and understanding.

India–Nepal Treaty of Peace and Friendship of 1950– In Nepal, it is a general belief that the Treaty is unfair as it was imposed.

However, treaty enabled Nepali nationals’ with an equal treatment in terms of employment and permitted them to apply for any government job.

The demand to review the Treaty was officially raised first in 1995. It was on the agenda of the Foreign Secretary’s meeting.

There is a need for discussions in an objective manner that addresses the concerns of both countries.