Kantipur Report http://www.kantipuronline.com/kolnews.php?&nid=132834
KATHMANDU, Dec 31 2007 - A cabinet meeting on Sunday directed the Ministry of Water Resources (MoWR) to award the 402 MW Arun III and 300 MW Upper Karnali projects on the basis of directives issued by the interim parliament's Natural Resources and Means Committee, effectively rejecting recommendation of a taskforce formed in October last year.
"The cabinet decided that the projects be awarded on the basis of directives of the parliamentary committee," said Minister for Peace and Reconstruction Ram Chandra Poudel. Minister of Water Resources Gyanendra Bahadur Karki was not available for comments.
The taskforce, headed by former secretary Bhanu Prasad Acharya, had recommended in April this year that both the projects be awarded to India's GMR Energy Ltd. Nine companies had submitted proposals for Arun III and 14 for Upper Karnali.
In July, the parliamentary committee directed the government to re-evaluate the project proposals giving top priority to free energy, free equity and other concrete benefits offered to Nepal by the prospective developers.
MoWR presented the recommendation of the taskforce as well as directives of the parliamentary committee at Sunday's cabinet meeting.
Poudel said that now MoWR will be tasked with informing the interested developers of the criteria set by the parliamentary committee, ask them how much free energy, free equity and other concrete benefits they are willing to offer, and take decisions on the two projects accordingly.
The taskforce headed by Acharya had also taken into consideration other parameters such as listing in the stock exchange, experience, financial soundness, power marketing arrangements and project completion date.
Posted on: 2007-12-30 21:13:10 (Server Time)
Monday, December 31, 2007
Nepal allows Indian firms to enter hydropower sector
By IANS - Monday December 31, 200712:33 PM http://in.news.yahoo.com/071231/43/6p14o.html
Kathmandu, Dec 31 (IANS) After stalling for almost a year, Nepal's government has finally cleared the decks for Indian companies to enter its hydropower sector although obstacles still remain.
The council of ministers Sunday approved of foreign investment in two projects that were being eyed by major Indian companies.
According to minister of state for water resources Gyanendra Bahadur Karki, the cabinet has approved foreign investment for the 402-MW Arun-III and 300-MW Upper Karnali projects.
After Nepal started seeking investment from abroad to develop the two projects, nine companies had bid for Arun-III and 14 for Upper Karnali, most of them Indian firms.
A committee formed by the government to evaluate the bids declared the Hyderabad-based GMR company to be the best bidder, taking into account its experience, financial status, royalty and free energy offer.
For Upper Karnali, followed by GMR, the other Indian companies ranked as the best bidders were KSK Engineering, also from Hyderabad, Reliance and Jindal.
For Arun-III, the three other top contenders were Sutlej, Jindal and Reliance.
However, GMR's bids received a blow when the parliamentary committee for natural resources and means overturned the recommendations, saying that one bidder should be given only one project at a time.
The MPs also asked the government to award the contracts after taking into consideration factors like the offer of free energy and royalty.
Of the four, Jindal has offered the maximum free energy to power-starved Nepal - 12 percent for Upper Karnali and 22 percent from Arun-III.
Now fresh negotiations will be started among the top bidders.
With the Maoists returning to the government Monday, the actual awarding of the contracts is likely to take even longer.
The rebels have begun a fresh campaign against Indian authorities and are likely to insist on their pound of flesh for letting work start on the two projects.
Also, with Nepal this month declaring itself a federal republic, the regions in which the two projects are located would also want to enter the bargaining table.
To make things even more complicated, the government has agreed to form a coordination committee comprising a member each from all the ruling parties.
The new committee will have the power to decide contentious issues, which include water resources.
India has been trying to push the deals through. The Indian ambassador to Nepal Shiv Shankar Mukherjee recently said that Nepal's hydropower sector was the factor that could kick-start the economy.
However, if the Maoists continue their anti-Indian stand, the push would produce negative results.
Kathmandu, Dec 31 (IANS) After stalling for almost a year, Nepal's government has finally cleared the decks for Indian companies to enter its hydropower sector although obstacles still remain.
The council of ministers Sunday approved of foreign investment in two projects that were being eyed by major Indian companies.
According to minister of state for water resources Gyanendra Bahadur Karki, the cabinet has approved foreign investment for the 402-MW Arun-III and 300-MW Upper Karnali projects.
After Nepal started seeking investment from abroad to develop the two projects, nine companies had bid for Arun-III and 14 for Upper Karnali, most of them Indian firms.
A committee formed by the government to evaluate the bids declared the Hyderabad-based GMR company to be the best bidder, taking into account its experience, financial status, royalty and free energy offer.
For Upper Karnali, followed by GMR, the other Indian companies ranked as the best bidders were KSK Engineering, also from Hyderabad, Reliance and Jindal.
For Arun-III, the three other top contenders were Sutlej, Jindal and Reliance.
However, GMR's bids received a blow when the parliamentary committee for natural resources and means overturned the recommendations, saying that one bidder should be given only one project at a time.
The MPs also asked the government to award the contracts after taking into consideration factors like the offer of free energy and royalty.
Of the four, Jindal has offered the maximum free energy to power-starved Nepal - 12 percent for Upper Karnali and 22 percent from Arun-III.
Now fresh negotiations will be started among the top bidders.
With the Maoists returning to the government Monday, the actual awarding of the contracts is likely to take even longer.
The rebels have begun a fresh campaign against Indian authorities and are likely to insist on their pound of flesh for letting work start on the two projects.
Also, with Nepal this month declaring itself a federal republic, the regions in which the two projects are located would also want to enter the bargaining table.
To make things even more complicated, the government has agreed to form a coordination committee comprising a member each from all the ruling parties.
The new committee will have the power to decide contentious issues, which include water resources.
India has been trying to push the deals through. The Indian ambassador to Nepal Shiv Shankar Mukherjee recently said that Nepal's hydropower sector was the factor that could kick-start the economy.
However, if the Maoists continue their anti-Indian stand, the push would produce negative results.
Indian Firm 'Bags' Arun III, Upper Karnali
http://www.nepalnews.com.np/contents/2007/englishweekly/spotlight/jul/jul13/national4.php
July 13, 2007 - Indian firm GMR Infrastructure has reportedly bagged the Upper Karnali (UK) and Arun III hydroelectricity projects, while it is expecting to also bag Upper Marshyangdi II and III, reports The Himalayan Times daily.
The company has plans to generate 952 megawatt of power in Nepal and market it in India through Power Trading Corporation (PTC). The report to this effect, filed from Mumbai, appeared in July 5 edition of the Economic Times. While the installed capacity of UK and Arun III is 300 MW and 402 MW respectively, that of Upper Marshyangdi II and III put together in 250 MW.
Both the export-oriented hydro electricity projects (Arun III and UK) are to be implemented on a Build Operate Own Transfer (BOOT) model for a 30-year period that includes construction.
Under the conditions, which have come to light earlier, ownership will be handed over to Nepal after three decades. Besides the free power, Nepal also retains the right to purchase up to 10 percent of the power generated at the projects, the report further said. GMR has offered Nepal 33 percent free equity in the UK, apart from 7.5 percent free energy.
The proposal also includes two and a half years to prepare for the project and four and a half years for construction, including financing with debt-equity of 75:25.
In Arun III, the company will share 15 percent of the power in the first 15 years of operation and 10 percent for the remainder of the license period. The report has quoted sources, saying, "The Ministry has decided to award the hydropower projects to GMR, at the recommendation of the evaluation committee."
But spokesperson at the Ministry of Water Resources Anup Kumar Upadhyaya, temporized when asked to comment on the latest development merely saying, "I am not aware of such a decision." It may be recalled that the task force headed by former secretary Bhanu Prasad Acharya had recommended that GMR be awarded the two projects in a report submitted to the government two months ago.
July 13, 2007 - Indian firm GMR Infrastructure has reportedly bagged the Upper Karnali (UK) and Arun III hydroelectricity projects, while it is expecting to also bag Upper Marshyangdi II and III, reports The Himalayan Times daily.
The company has plans to generate 952 megawatt of power in Nepal and market it in India through Power Trading Corporation (PTC). The report to this effect, filed from Mumbai, appeared in July 5 edition of the Economic Times. While the installed capacity of UK and Arun III is 300 MW and 402 MW respectively, that of Upper Marshyangdi II and III put together in 250 MW.
Both the export-oriented hydro electricity projects (Arun III and UK) are to be implemented on a Build Operate Own Transfer (BOOT) model for a 30-year period that includes construction.
Under the conditions, which have come to light earlier, ownership will be handed over to Nepal after three decades. Besides the free power, Nepal also retains the right to purchase up to 10 percent of the power generated at the projects, the report further said. GMR has offered Nepal 33 percent free equity in the UK, apart from 7.5 percent free energy.
The proposal also includes two and a half years to prepare for the project and four and a half years for construction, including financing with debt-equity of 75:25.
In Arun III, the company will share 15 percent of the power in the first 15 years of operation and 10 percent for the remainder of the license period. The report has quoted sources, saying, "The Ministry has decided to award the hydropower projects to GMR, at the recommendation of the evaluation committee."
But spokesperson at the Ministry of Water Resources Anup Kumar Upadhyaya, temporized when asked to comment on the latest development merely saying, "I am not aware of such a decision." It may be recalled that the task force headed by former secretary Bhanu Prasad Acharya had recommended that GMR be awarded the two projects in a report submitted to the government two months ago.
Monday, December 17, 2007
Bhutan, Nepal as sources of power for India
Samiran Saha, Hindustan Times
Email Author
New Delhi, December 16, 2007
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=e4eaba98-f45d-419c-90a0-b0b6e2952a54&&Headline=Bhutan%2c+Nepal+as+sources+of+power+for+India
The sub-Himalayan water bodies in Nepal and Bhutan could hold the key to India’s power shortage. The government is examining the possibility of tapping the resources available in the storage dams of these countries to enhance energy supply.
At present, power generation is skewed heavily towards thermal sources. According to Ministry of Power statistics, in India thermal power constitutes to about 64 per of the total power generating capacity while 25.2 per cent is constitutes by hydropower.
India’s total power generation capacity stands at 1,36,901 mega watts of which hydropower contributes about 34,390.76 megawatt or 25.2 per cent.
“Even if the remaining hydro potential in the country is fully harnessed in a time span of about 30 years, the thermal-hydro mix will still not be close to the ideal of 60:40 considering the increase in thermal capacity in the intervening period,” a senior official in the power ministry said.
India is currently importing power from 1,020 MW Tala Hydroelectric Power Project in Bhutan as part of the pact between India and the Druk kingdom. The project had started generation in July last year.
Though India has been exploring hydropower projects in Nepal, which also has immense hydropower potential, none of the big projects has taken off so far primarily due to political instability. “India,” according to the official, “is keen on Nepal developing its hydropower potential as the experience with Bhutan has shown,” the official said.
The official said development of hydropower project will ease India’s power woes to a very large extent especially in power deficient states of the northeastern region.
“With Nepal and Bhutan in proximity of the seven sister states, wheeling of power will be, easy and will not be fraught with huge transmission and distribution losses,” the official added.
Development of hydropower projects in the neighbouring countries, officials feel should be based on commercial principles where the host country, the project developer and the consumers in India share the benefits equitably.
Email Author
New Delhi, December 16, 2007
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=e4eaba98-f45d-419c-90a0-b0b6e2952a54&&Headline=Bhutan%2c+Nepal+as+sources+of+power+for+India
The sub-Himalayan water bodies in Nepal and Bhutan could hold the key to India’s power shortage. The government is examining the possibility of tapping the resources available in the storage dams of these countries to enhance energy supply.
At present, power generation is skewed heavily towards thermal sources. According to Ministry of Power statistics, in India thermal power constitutes to about 64 per of the total power generating capacity while 25.2 per cent is constitutes by hydropower.
India’s total power generation capacity stands at 1,36,901 mega watts of which hydropower contributes about 34,390.76 megawatt or 25.2 per cent.
“Even if the remaining hydro potential in the country is fully harnessed in a time span of about 30 years, the thermal-hydro mix will still not be close to the ideal of 60:40 considering the increase in thermal capacity in the intervening period,” a senior official in the power ministry said.
India is currently importing power from 1,020 MW Tala Hydroelectric Power Project in Bhutan as part of the pact between India and the Druk kingdom. The project had started generation in July last year.
Though India has been exploring hydropower projects in Nepal, which also has immense hydropower potential, none of the big projects has taken off so far primarily due to political instability. “India,” according to the official, “is keen on Nepal developing its hydropower potential as the experience with Bhutan has shown,” the official said.
The official said development of hydropower project will ease India’s power woes to a very large extent especially in power deficient states of the northeastern region.
“With Nepal and Bhutan in proximity of the seven sister states, wheeling of power will be, easy and will not be fraught with huge transmission and distribution losses,” the official added.
Development of hydropower projects in the neighbouring countries, officials feel should be based on commercial principles where the host country, the project developer and the consumers in India share the benefits equitably.
Bhutan, Nepal as sources of power for India
By Google Samiran Saha, Hindustan Times
Email Author
New Delhi, December 16, 2007
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=e4eaba98-f45d-419c-90a0-b0b6e2952a54&&Headline=Bhutan%2c+Nepal+as+sources+of+power+for+India
The sub-Himalayan water bodies in Nepal and Bhutan could hold the key to India’s power shortage. The government is examining the possibility of tapping the resources available in the storage dams of these countries to enhance energy supply.
At present, power generation is skewed heavily towards thermal sources. According to Ministry of Power statistics, in India thermal power constitutes to about 64 per of the total power generating capacity while 25.2 per cent is constitutes by hydropower.
India’s total power generation capacity stands at 1,36,901 mega watts of which hydropower contributes about 34,390.76 megawatt or 25.2 per cent.
“Even if the remaining hydro potential in the country is fully harnessed in a time span of about 30 years, the thermal-hydro mix will still not be close to the ideal of 60:40 considering the increase in thermal capacity in the intervening period,” a senior official in the power ministry said.
India is currently importing power from 1,020 MW Tala Hydroelectric Power Project in Bhutan as part of the pact between India and the Druk kingdom. The project had started generation in July last year.
Though India has been exploring hydropower projects in Nepal, which also has immense hydropower potential, none of the big projects has taken off so far primarily due to political instability. “India,” according to the official, “is keen on Nepal developing its hydropower potential as the experience with Bhutan has shown,” the official said.
The official said development of hydropower project will ease India’s power woes to a very large extent especially in power deficient states of the northeastern region.
“With Nepal and Bhutan in proximity of the seven sister states, wheeling of power will be, easy and will not be fraught with huge transmission and distribution losses,” the official added.
Development of hydropower projects in the neighbouring countries, officials feel should be based on commercial principles where the host country, the project developer and the consumers in India share the benefits equitably.
Email Author
New Delhi, December 16, 2007
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=e4eaba98-f45d-419c-90a0-b0b6e2952a54&&Headline=Bhutan%2c+Nepal+as+sources+of+power+for+India
The sub-Himalayan water bodies in Nepal and Bhutan could hold the key to India’s power shortage. The government is examining the possibility of tapping the resources available in the storage dams of these countries to enhance energy supply.
At present, power generation is skewed heavily towards thermal sources. According to Ministry of Power statistics, in India thermal power constitutes to about 64 per of the total power generating capacity while 25.2 per cent is constitutes by hydropower.
India’s total power generation capacity stands at 1,36,901 mega watts of which hydropower contributes about 34,390.76 megawatt or 25.2 per cent.
“Even if the remaining hydro potential in the country is fully harnessed in a time span of about 30 years, the thermal-hydro mix will still not be close to the ideal of 60:40 considering the increase in thermal capacity in the intervening period,” a senior official in the power ministry said.
India is currently importing power from 1,020 MW Tala Hydroelectric Power Project in Bhutan as part of the pact between India and the Druk kingdom. The project had started generation in July last year.
Though India has been exploring hydropower projects in Nepal, which also has immense hydropower potential, none of the big projects has taken off so far primarily due to political instability. “India,” according to the official, “is keen on Nepal developing its hydropower potential as the experience with Bhutan has shown,” the official said.
The official said development of hydropower project will ease India’s power woes to a very large extent especially in power deficient states of the northeastern region.
“With Nepal and Bhutan in proximity of the seven sister states, wheeling of power will be, easy and will not be fraught with huge transmission and distribution losses,” the official added.
Development of hydropower projects in the neighbouring countries, officials feel should be based on commercial principles where the host country, the project developer and the consumers in India share the benefits equitably.
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