The Hindu Business Line : India, Nepal to co-operate in hydropower sector

At a luncheon meeting in honour of the Deputy Prime Minister and Minister of Foreign Affairs of Nepal, Mr K.P. Sharma Oli, organised by the Confederation of Indian Industry (CII), it emerged that several Indian companies are keen to invest in the development of Nepal's hydroelectric sector.

"Nepal hopes to forge synergistic partnerships with Indian companies, especially in developing its water resources, infrastructure, roads, power and agri-business sectors. Hydro-power is of special interest to India to assist in its own development," said Mr Oli.

Peace is a prerequisite for attracting investment and Nepal has witnessed a decade-long insurgency, he said. "Now, we expect an end to the armed conflict very shortly. The Maoists are expected to surrender their arms. We expect this to improve the investment climate in Nepal even further," he said.

Underlining the importance of hydro-power development, the Ambassador of India to Nepal, Mr Shivashankar Mukherjee, said there was great interest by several Indian companies to enter this sector in Nepal at the Bilateral Power Summit held in Kathmandu in September. The two countries will shortly set up cross-border transmission highways that will spur a new trade in power.

"The renewal of the Indo-Nepal trade treaty in March 2007 will address non-tariff and para-tariff barriers to imports from Nepal, services, manufacturing, education, health, tourism and IT and ITES," Mr Mukherjee said. Since the agreement was signed in 1996, bilateral trade has grown to $2 billion and 40 per cent of the tourists who visit Nepal by air come from India. There has been a 40 per cent jump in investments from India into Nepal.