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Energizing India-Nepal ties

GS paper 2

Syllabus: Bilateral, regional and global groupings involving India and affecting India’s interests


Source: The Hindu


  • The Investment Board Nepal signed a Memorandum of Understanding (MoU) with India’s National Hydroelectric Power Corporation (NHPC) Limited to develop the West Seti and Seti River (SR6) projects — a total of 1,200 MW.



  • Withdrawal of China: China withdrew from the Seti project before Nepal decided to grant the project to India
  • Issues of Resettlement and rehabilitation: In an MoU in 2012, China’s Three Gorges International Corporation was assigned to develop the project, but it withdrew in 2018, citing issues of resettlement and rehabilitation.


Other Projects involving India:

  • Mahakali Treaty (6,480 MW)
  • Upper Karnali Project (900 MW)
  • Arun Three projects (900 MW)


Benefit of this project for India:

  • Geopolitical influence of China: It will help India minimize the Chinese influence and firm its presence in Nepal.
    • The West Seti Hydroelectric Project was a major Chinese venture under the Belt and Road Initiative.
  • Cross-border exchange: The project has the potential to enhance cross-border power exchanges between the two countries.
  • Growing energy demand: The West Seti Hydroelectric Project can provide an added alternative and viable way to address power deficits.


Steps needed for its success:

  • Investment-related constraints: There needs to be a careful study of investment scenarios, particularly a conducive investment environment, distribution and transmission network and cost of resettlement and rehabilitation, at the preliminary stage.
  • Nepal’s concern about electricity rates and supply from India: To address these concerns, the new MoU has already revised the percentage share of energy that Nepal will receive free of cost from the generation projects to 9(twenty-one point nine)% from 10%.
  • Domestic demand: The MoU allows Nepal to request the NHPC to sell the power generated from the projects to the domestic market before selling whole or part to the export market.
  • BBIN energy cooperation: The project can also be extended to other regional partners under the Bangladesh-Bhutan-India-Nepal (BBIN) framework for cross-border energy cooperation.


Insta Links:

India-Nepal ties

India and Nepal Border Dispute

west Seti Power Project


Mains Links:

Q. The long-sustained image of India as a leader of the oppressed and marginalized Nations has disappeared on account of its newfound role in the emerging global order” Elaborate. (UPSC 2019)


Prelims Links:

  • Mahakali Treaty
  • Upper Karnali Project
  • Arun Three projects
  • West Seti project
  • India Nepal border dispute mapping
  • BRI

Consider the following statements:

  1. The West Seti dam is located at the confluence of the Seti and Karnali river.
  2. Seti dam lies to the east of Kathmandu.

Which of the statements given above is/are not correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Ans: (c


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