Kathmandu, September 23

A two-day power summit with the objective of attracting domestic and foreign investment for developing the hydroelectricity potential of Nepal kicked off here today.

Some 300 people related to the power sector from different countries including Nepal and India are participating in the conference jointly organized by the Independent Power Producers Association (IPPAN), Power Trading Corporation (PTC), India and Nepal-India Chamber of Commerce.

Working papers on topics such as power production, distribution, utilisation of water resources, renewable energy and the possibilities of Indian investment are to be presented and discussed in the conference.

It is believed that this conference, which is being organised in Nepal for the third time, will help attract domestic and foreign investment in hydropower sector, identify the possibilities of developing hydroelectricity, promoting energy security and sharing of experience in these topics.

In a message of best wishes for the success of the conference, Prime Minister Pushpa Kamal Dahal ‘ Prachanda’ said although there is no doubt about Nepal being one of the richest countries in hydroelectricity production potentials, it has not been able to develop this sector adequately due to social, political or other direct or indirect factors.

Stating the Government of Nepal has set the target of producing 10,000 megawatt of hydroelectric power in ten years for rapid economic growth as per its policies and programmes, the Prime Minister has noted that Nepal can be the suitable destination for investment in renewable energy projects and hydroelectricity development due to its immense water resources.

Prime Minister Prachanda said although India is Nepal’s biggest trade partner and it occupies more than two-thirds of the total volume of international trade transaction, Nepal’s trade deficit with India has gradually increased over the last five years and it reached 105 billion rupees in fiscal year 2007/08. He added that it would be difficult to bear this trade deficit for a long time.

He observed that both countries would be in a win-win situation through the development hydroelectricity and Nepal can also make up its trade deficit with India through this sector.

Inaugurating the conference, Deputy Prime Minister and Home Minister Bamdev Gautam said water resources are tied to our culture and civilization.

The Deputy Prime Minister recalled Government of India has agreed during the recent visit of Prime Minister to India to construct the Naumure Hydroelectricity Project as a goodwill gesture.

He said the development of hydroelectricity is inevitable for building new Nepal and that the topic of hydroelectricity development was related to the bilateral relations between Nepal and India.

Deputy Prime Minister Gautam gave the assurances that the government would ensure the law and order to creating the opportunities for domestic and foreign investment.

Minister for Water Resources Bishnu Poudel said the present government has made some new provisions in connection with the energy sector such as providing concession in the Value Added Tax to hydroelectricity projects, removal of the provision for taking license for construction of hydroelectricity projects up to 3 megawatt capacity and the provision not requiring to carry out Environmental Impact Assessment (EIA) for building hydroelectricity projects up to 50 megawatt capacity.

Minister of State for Commerce and Power of India, Jayaram Ramesh said Nepal could cover its trade deficit with India if it can attract the Indian investors related to the power development sector in the hydro power development. He added that Nepal should understand that India is its market for exporting hydroelectricity in future.

President of IPPAN Sandip Shah stressed the need for sending out the message that ‘Nepal is a destination for investment in hydroelectricity’ to the outside world. He urged the government to make serious efforts for creating the environment for development of hydroelectricity sector.

TN Thakur of PTC Private Limited said India will be in need of 300,000 megawatts of electricity in the next ten years and India was willing to resolve the power crisis on both countries by utilizing the abundant potentials for hydroelectricity production in Nepal.

President of Nepal-India Chamber of Commerce Arun Kumar Chaudhari underlined the need for attracting domestic and foreign investment for the development of hydroelectricity.

He expressed the hope that the conference will help create suitable environment for promoting investment in power development sector.