Water resources in Nepal are crucial to its economy and have been a significant topic in the bilateral cooperation agenda with India for a long time. To maximise benefits and address issues related to water resources, the two governments have established three levels of mechanisms: Joint Ministerial Commission for Water Resources (JMCWR), Joint Committee on Water Resources (JCWR) and Joint Standing Technical Committee (JSTC). These mechanisms are responsible for implementing agreements and treaties and tackling problems such as flooding and inundation. Additionally, a Joint Committee on Inundation and Flood Management (JCIFM) is also in place to specifically address concerns related to flooding, embankments and flood forecasting.
Back in 2014, a significant agreement was reached between India and Nepal, which enabled the free flow of electricity between them without any limitations. The agreement was signed to promote and strengthen the exchange of electricity, grid connectivity and power trade between the two countries. The main objective was to establish a solid foundation for power trade, allowing Nepal to import electricity from India until it became self-sufficient, and eventually enabling Indian entities to import power from Nepal under mutually agreed-upon terms and conditions.
However, after 2014, after several negotiations, India and Nepal have entered into a number of hydropower trading agreements. Indian businesses are actively participating in the development of numerous projects in Nepal. Furthermore, in 2018, the Nepalese government introduced guidelines for facilitating cross-border trade in electricity, commonly known as CBTE guidelines. These guidelines were subsequently revised in 2019, with no specific conditions imposed on power plant ownership.
As far as current developmental ties on hydropower energy generation are concerned, the Indian Foreign Secretary visited Kathmandu in February to strengthen economic and development co-operation. Power trade was one of the matters discussed in the meeting. Following their meeting, the two nations have come to an agreement to bolster the import and export capacity of electricity through various transmission lines. The Dhalkebar-Muzaffarpur transmission line will now be able to handle up to 800 megawatts, while the Tanakpur-Mahendranagar 132 KV power transmission will import and export between 70 to 80 MW of electricity. Additionally, both countries have agreed to complete the construction of the Indian section of the 400 KV new Butwal-Gorakhpur transmission line by March 2025, which will be the second international transmission line. The parties also plan to build two more 400 KV capacity international transmission lines by 2027/28 and 2028-29. Furthermore, India has given Nepal the green light to submit a proposal to export 50 MW of electricity to Bangladesh via India, provided it complies with the relevant export-import guidelines.
Further, India and Nepal have reached a consensus to advance the Sapta Kosi high dam initiative to reinforce their collaboration in the water sector. The Sapta Kosi high dam initiative will involve the construction of a high dam on the Kosi river in Nepal, which will help regulate water flow and prevent flooding downstream in India. The project will also generate hydropower and facilitate irrigation in both countries. The Mahakali Treaty, which was signed in 1996, governs the sharing of the waters of the Mahakali river between Nepal and India. The successful implementation of the Sapta Kosi high dam initiative will further strengthen the cooperation between the two countries in the water sector and contribute to their overall bilateral relationship.
Given the commitments stated earlier, it is important to authorise the long-term export of electricity from Nepal to India using all available options in the trading market. It is crucial to acknowledge the matter of China's participation in Nepal and their potential meddling. While China has established ties with Nepal and extended their support in terms of contractors and engineers, their underlying motives remain ambiguous. India, being a close neighbour of Nepal, needs to pay attention to the situation and assess the implications of China's involvement. It is imperative for India to adopt a measured and strategic approach towards its engagement with Nepal and China, keeping in mind the long-term interests of all parties involved.
Another important issue, which has been covered by the media, is the stone-pelting against workers on hydropower projects. One such incident was reported on December 4, 2022, when villagers from the Nepal side pelted stones on the Indian side in the same area. A day after the incident, local residents and traders staged a protest against the incident and blocked the border bridge over the Kali river. The Uttarakhand police later filed a case against unidentified Nepalese citizens who allegedly hurled stones at workers on the Indian side engaged in the construction of an embankment on the river.
In Nepal, leaders often use anti-India sentiments as a means to gain popularity among the masses. This is due to the significant role India plays in not only the political sphere but also in Nepal's society, culture and religion. As a result, domestic politics in Nepal has increasingly become centered around pro- and anti-India rhetoric, with politicians vying to portray themselves as strong leaders who can stand up to India. So, what will happen if tomorrow, the government is changed? Will they allow energy ties between the two countries to continue at the same pace? These are a few questions which need to be discussed with the Nepalese government.
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On the other hand, the Indian government can give Nepal an assurance that it is willing to provide assistance in the education, healthcare and drinking water sectors. By executing these initiatives, India will demonstrate its commitment to reinforcing the Nepalese government's endeavours in enhancing the living standards of its citizens.
In conclusion, the relationship between Nepal and India transcends formal documents and diplomatic agreements, as it is characterised by a deep-rooted bond that defies political boundaries and legal definitions. Their shared history, culture and traditions have cemented a unique kinship that stands the test of time, making their bond a testament to the power of human connection and camaraderie. The regular exchange of high-level visits between the leaders of both nations has become a defining feature of their relationship. These interactions have paved the way for fostering cordiality, mutual trust, comprehension and collaboration between the two nations, infusing new energy into the deep-rooted and diverse bilateral ties of amity and partnership. As a result, the Nepal-India relationship has matured and is now on a more realistic and sensible footing, ensuring its continuity and enhancement.
(Dr Sarvesh Kumar Shahi is Assistant Professor, School of Law, KIIT University, Bhubaneswar. Dr Manish Yadav is Associate Professor, NLIU, Bhopal.)