India mulls investment in Nepal power sector

Kathmandu, Sep 8 (UNI) India plans to invest in the power sector of Nepal, provided a conducive investment policy is formulated in the Himalayan nation.

Speaking at a two-day Indo-Nepal Power Summit here, Indian ambassador to Nepal Shiv Shanker Mukherjee said, India was planning to provide support for the development of a 100-150 megawatt (MW) hydropower project in Nepal.

''We are prepared to consider providing support, through an appropriate financial model and corporate structure, for the development of a project in the range of 100-150 MW for Nepal's own use,'' Kantipur quoted Mr Mukherjee as saying.

India would provide funds for rehabilitating and upgrading the Devighat hydroelectric project, which was built 25 years ago with the Indian assistance, he said.

GMR company, the first private firm to invest in power sector from India, is likely to make an announcement within a month to invest in a 200-400 MW project in Nepal, said its Vice Chairman Abinash Shah. ''But there should be a conducive atmosphere for investment.'' Government should help the investors in technical matters such as land acquisition, effective regulatory machinery and transparency in granting license, Mr Shah said.

The Indian companies are ready to invest in Nepal, whether alone or jointly with local investors, Mr R K Narayan, representative from Jaypee Group India said. The group, currently, produces 8,190 MW power in India, he said.

PTC India Ltd Managing Director T N Thakur said,''Investments in hydropower in Nepal and high voltage transmission connection to India should be initiated simultaneously.'' More than 100 companies from India and Nepal have participated in the two-day summit, which sources say could be fruitful for Nepal with regard to Indian investments.

More than two third industries in Nepal are Indian joint ventures.

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