West Seti given to India without competition

Finally, the government has handed over the West Seti hydro project to India without any competitive bidding. Interestingly, the communist parties including the Rastriya Jana Morcha, which are in the ruling coalition, have remained silent over the decision.

The Investment Board Nepal (IBN) on Thursday last week signed a Memorandum of Understanding (MoU) with an Indian government company, NHPC Limited, to develop the 750 MW West Seti and 450 MW Seti River-6 hydroelectricity projects. Chief Executive Officer of the Office of the IBN Sushil Bhatta and Chairman and Managing Director of NHPC Abhay Kumar Singh signed the MoU in the presence of Prime Minister Sher Bahadur Deuba, Minister for Finance Janardan Sharma, Minister for Energy, Water Resources and Irrigation Pampha Bhusal, Minister for Industry, Commerce and Supplies Dilendra Prasad Badu and Chief Minister of Sudurpaschim Province Trilochan Bhatta in Kathmandu. The estimated cost of the West Seti project is US$1,320 million, and Seti River-6 will need about US$ 450 million. PM Deuba, on the occasion, appreciated the cooperation of India in Nepal's development including in tapping the hydropower potential. PM Deuba also expressed his hope that the two projects would be developed promptly and directed the IBN to make effective cooperation and collaboration. "I would like to express my commitment that the government of Nepal will facilitate the NHPC in developing the projects," he stated.

Earlier, the government handed over Arun III to India. Now with Seti, India is gradually succeeding to control key hydropower projects in Nepal. A meeting of the IBN chaired by Prime Minister Sher Bahadur Deuba on August 8

approved the MoU to conduct a feasibility study for the development of the two hydel projects, to be signed with the NHPC. Earlier in May this year, PM Deuba and his Indian counterpart Narendra Modi, during the latter's visit to Lumbini on the occasion of Buddha Jayanti, had agreed to hand over the two projects to an Indian governmentrun company for their development.

The two projects will be based in five districts in Sudurpaschim Province. Both the projects will be developed in the same river basin at a distance of about 50 km. The two projects were showcased at Nepal Investment Summit 2019.