Indian firms in fray for Nepal Power Project
Vishal Singal
KATHMANDU: As peace talks resume in Nepal between the government and
Maoist insurgents, at least three Indian companies are eyeing a
hydropower project in the country's north.
The 300 MW Upper Karnali hydropower project, once considered a risky
venture because of the presence of Maoists in the region, has become an
attractive proposition for Indian investors as the rebels have signed a
pact with the government to allow the industrial sector to operate
without hindrances.
New Delhi's Jaypee Group, Andhra Pradesh's GVK and the
Bangalore-headquartered GMR Group have begun talks with the government
for staking the power project.
In 2003, India's National Hydroelectric Power Corp had reached an
understanding with Nepal Electricity to develop the project as an
independent power producer without any links to the Indian government.
NHPC chairman and managing director Yogendra Prasad had visited Nepal,
met power officials, and strengthened the understanding that NHPC would
have a majority stake (80-85 percent) with the produced power being
sold to India.
However, even three years later, the project failed to take off. Held
back at first by a disagreement over power rate, last year talks were
almost abandoned after King Gyanendra seized power and the political
turmoil and royal regime's cold war with New Delhi kept Indian
investors away.
Last year, the cash-strapped and power-starved royal regime announced
it would look for other investors if NHPC did not show up.
Now, four months after the fall of the royal regime, NHPC is yet to
pick up the threads of the old understanding whereas three new Indian
companies are showing keen interest.
Of them, the Jaypee Group, which has interests ranging from
construction, hospitality, engineering and IT and boasts of an annual
turnover of over $650 million, already has the experience of running a
hydropower project outside India.
Besides operating 12 hydropower projects in six Indian states, it is
also involved in the Tala hydroelectric project in Chukha Dzongkhag in
western Bhutan.
GVK, currently developing hydel projects in Himachal Pradesh and
Uttaranchal, this year formed a consortium with the GMR Group to
upgrade the New Delhi and Mumbai airports.
More Indian investors could turn their attention to Nepal with the
Confederation of Nepalese Industries and Independent Power Producers of
Nepal planning two separate hydropower marts for small and medium-size
projects.
While the Hydropower Invest Mart 2006 would be held Aug 21-23 to
identify small projects up to 10 MW and match them with investors,
later during the year a mart would be organised to identify medium
projects, ranging from 10-100 MW.
Vishal Singal
Singal Hydel Consulting SHC
"Power House" # 892, Sector 12
Panchkula 134 112, HRY INDIA
Tel +91 9888188891, 9888288892
E-Mail: singa...@yahoo.com
Web: http://www.himurja.com
[Tapping the Power of the Himalayas]
LM Rajbhandari
Thanks for your information.
Now a days in Nepal have good oppertunities for the hydro power project for
foregner to investment. We are very much interested to co-operate any group
who want to invest in hydro power project.
You know very well that we are doing pico-micro hydro project in Nepal and
more than 500 system we have already installed here.
Thanking you with best regards,
L.M.Rajbhandari
Chairman
Krishna Grill & Engineering Works (Pvt.) Ltd.
Koshati Trading Concern Pvt. Ltd.
PO Box No. 150
Main Road South
Biratnagar-13
Nepal
Phone: 00977 21 535904/525492
Fax: 00977 21 531162
