India-Nepal Relations

If China builds your dams, India won’t buy energy: PM Narendra Modi to tell KP Oli

The battle for influence in the Nepal Himalayas between India and China is hotting up, with Prime Minister Narendra Modi expected to tell Nepal counterpart K P Oli that he can award as many dam projects as he likes to China, but India will not be able to buy the energy produced.

Modi’s tough message to Kathmandu — Oli’s three-day visit starts Friday — will be couched in the niceties of diplomatic prose, but there will be no denying “India’s red lines,” a senior government official told The Indian Express.

One particular dam project, the $2.5-billion Budhi Gandaki project, on a river by the same name in central-western Nepal, is increasingly becoming the centrepiece of this tug-of-war between Delhi and Beijing.

This is because the Budhi Gandaki was awarded in June last year to China’s Gezhouba Group, weeks after former Nepal Prime Minister and Maoist leader Pushpa Kamal Dahal, or ‘Prachanda’, decided to join China’s Belt and Road Initiative. But within months, Nepali Congress leader Sher Bahadur Deuba had taken over from Prachanda as Prime Minister, and by November he had cancelled the dam project, saying the agreement to build it had been done in an “irregular and thoughtless manner”.

On the streets of Kathmandu, when Deuba cancelled the project, it was common talk that “India had persuaded him to do so”.

But last month, Oli told the South China Morning Post that he intends to revive the Budhi Gandaki, come what may. “Politica prejudice or pressure from rival companies may have been instrumental in scrapping the project. But for us, hydropower is a main focus and come what may, we will revive the Budhi Gandaki project,” he was quoted saying.

According to Oli, Nepal urgently needs to develop hydropower as an alternative to the highly expensive petroleum that it fully imports, most of it from India. Nepal’s fuel import bill is said to have trebled in the last five years.

So when Modi and Oli push a button in New Delhi, that virtually lays the foundation stone of the $1.5 billion, 900 MW Arun III hydro-electric project in the Sankhuwasabha district of eastern Nepal, the Prime Minister’s message of cooperation with Nepal will have a strategic caveat to it.

The senior government official said India would unroll the red carpet for Oli and his 53-member delegation during their three-day visit, but he would also hear about Delhi’s “red lines,” especially in the energy and security sectors.

It is likely that India will buy a large chunk of the power that is produced by the Arun III project, being built by the Sutlej Jal Vidyut Nigam (SJVN), a public sector undertaking, much on the lines of its hydro cooperation model with Bhutan. That model envisages India buying back a large chunk of the power it helped produce in Bhutan’s rocky geography.

Indian sources said similar terms could be applied to Nepal, but on the condition that Indian public sector or private companies be involved in building dams in Nepal. “You cant expect India to buy power from a Chinese-built project. Let Nepal take Chinese assistance to build those dams and let China buy back the power produced from there,” the government official said.

Analysts said this might put a spanner in the works for Nepal’s plans with China, because it might be difficult to build electricity transmission lines along the rocky terrain on the China-Nepal border to carry electricity back to Tibetan or other Chinese towns. China’s Three Gorges Corporation has been given a second dam project to build in Nepal, while India’s GMR and SJVN will build two project

If China builds your dams, India won’t buy energy: PM Narendra Modi to tell KP Oli

Nepal Scraps Chinese Contract, Will Build Mega Power Project On Its Own
 
  • Like
Reactions: Ironhide and Ashwin
It's not China which will negotiate with India for supply lines it's the Nepal or in case Bhutan ( for example) which will negotiate with India. And there you go Chinese will play their game that India is not allowing a land locked country to export it's power to other nations.

Wait and watch!
And then there plans are rejected due to India's geographical advantages.
 
This is exactly what China wants.

Is Nepal your keep or is Nepal under your rule? The more you try to act smart the more pro Indian nepalese will also go against you. Most of you have no knowledge how people migrate on daily basis or cross over Indo Nepal borders for work. You want to destroy this?

Narendra Modi has already made it clear to develop SAARC and India is already started working in this direction. China wants to break this and they have already started it.

Maldvieves gone out of your hand
Nepal gone out of your hand
Sri Lanka is confused
Bhutan was forced to call for protest in Doklam, they weren't making any moves until India asked them to.
Bangladesh plays two way games.

We already have enough problems around India by force you people want to Invite more. * claps*
And in the end India gets the cake to eat....
 
  • Like
Reactions: Ironhide
Nepal army chief returns after India visit
Nepal Army Chief Gen Rajendra Chhetri has returned home after a six-day official visit to India.
Gen Chhetri visited India at the invitation of his Indian counterpart Gen Bipin Rawat.

During the visit, the Nepal army chief held talks with Defence Minister Nirmala Sitharaman, the defence secretary, national security advisor, the navy chief and other high-level military officials, according to a press release by Nepal Army headquarters.

Such high level military visits would further strengthen friendly relations existing between two armies and help deepen mutual cooperation and promote bilateral interests between them, the Nepal Army said.
Gen Chhetri was also the Chief Reviewing Officer at a training programme at the Indian Military Academy in Dehradun.
Nepal army chief returns after India visit
 
BIMSTEC Summit: India, Nepal to sign MoUs on railway, bulk cargo
Ahead of the regional summit of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Nepal has prepared Memorandums of Understanding (MoUs) over the construction of railway and bulk cargo with India, Nepal’s Foreign Minister Pradeep Gyawali said on Friday.

The Foreign Minister also said that a bilateral meeting has been scheduled for Prime Ministers of both the countries on August 31, in the two-day summit.

“During the meeting (between the Indian PM and Nepali Counterpart) MoUs on railway co-operation and bulk cargo, are prepared to be signed,” Foreign Minister Gyawali said.

Prior to the summit, Nepal’s President Bidhya Devi Bhandari will host a luncheon in honour of the guests arriving in Kathmandu for the summit, which will be followed by the opening session in Hotel Soaltee Crowne Plaza in the capital city.

On August 31, Prime Minister Modi, who will be on a two- day visit to the Himalayan nation for the summit, will visit the Pashupatinath temple.

“On August 31, a meeting between Indian Prime Minister Narendra Modi and Nepali Prime Minister KP Oli is planned and the hospice built inside Pashupatinath temple in Indian Government aid will be inaugurated and handed over to Nepal,” Gyawali said.

BIMSTEC, the regional group of seven countries which lies near the Bay of Bengal, includes Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.

On the occasion of the BIMSTEC Summit, the state heads of Sri Lanka and Myanmar would also be making a bilateral visit. The state head of Myanmar is scheduled to arrive in Kathmandu on August 26, while the Sri Lankan President will be arriving on August 27.

The Prime Ministers from Bangladesh, Thailand, and India will be arriving in the capital city of Kathmandu on August 30.

Nepal, the current chair and the host nation of the 4th series of the Summit, will concentrate on the issues of energy, trade, the Buddhist circuit, tourism promotion and reduction of the impact of climate change, Gyawali informed.
BIMSTEC Summit: India, Nepal to sign MoUs on railway, bulk cargo
 
Chinese Firm Pulls Out of Nepal’s $1.2 billion Hydropower Project
China Three Gorges International (CTGI) pulling out of Nepal’s West Seti Hydropower Project may prove a turn-around for India since it has lost a major chunk of infrastructure projects in the Himalayan nation to Beijing.

New Delhi (Sputnik) —The $1.2 billion West Seti project was Nepal's first reservoir-type hydropower project and was slated to be completed in 2019 by the Chinese state-owned firm China Three Gorges International (CTGI). However, CTGI has decided to abandon the project citing economic non-viability despite assurances from the Nepalese government on capacity optimization and a US dollar power purchase agreement.

"We failed to conclude the negotiation…We will take the issue to the board, which is chaired by the prime minister, who will make the final decision," Maha Prasad Adhikari, the CEO of Nepal's Investment Board was quoted as saying by the Kathmandu Post.

Officials present at the negotiations between Nepal's government and CTGI on Wednesday claimed that the Chinese firm did not display any intent to move forward with the project as it termed the project commercially unviable even though Nepal had offered to reduce the capacity of the hydro project by 20% to 600 MW and extend the power purchase agreement from 10 years to 12 years.

1050893184.jpg


© Photo : Pixabay

It is being supposed that the real reason behind the Chinese firm's exit was India's unwillingness to purchase power from the project. This was indicated in a joint statement in May wherein India and Nepal had agreed to enhance bilateral cooperation in the power sector in line with a bilateral Power Trade Agreement. India was supposed to purchase 90% of the power from the West Seti Project.
Earlier this year, India's state-owned Satluj Jal Vidyut Nigam started work on the 900 MW Arun-III hydro-electric project in Nepal, which was seen as a reset in bilateral ties that had soured since India imposed an unofficial economic blockade in 2016.


China had entered Nepal's hydro-electricity sector over which India once held a monopoly by taking up the West Seti project in 2012 after Australia's Snowy Mountain Company failed to raise enough funds for the project. Following the 2016 economic blockade, China attempted to establish a stronger footing by signing an agreement for several other projects with the Himalayan country that has the potential to generate over 40,000 MW of hydropower. However, with the West Seti agreement falling through, it is feared that projects like the $2.5 billion Budhi Gandaki project in central-western Nepal may also face the same fate.
Chinese Firm Pulls Out of Nepal’s $1.2 billion Hydropower Project
 
China Opens Seven Ports for Nepal to Bypass India in International Trade

98 percent of Nepal's third country trade passes through India's Kolkata port. This would change after the implementation of the Protocol of Nepal-China Transit and Transportation, likely to take place in the next one month, giving Nepal access to seven major Chinese ports through which it can conduct trade with third countries.

Nepal and China have finalized the text of the much-awaited Protocol of Nepal-China Transit and Transportation in a major breakthrough during the third senior official-level meeting held in Kathmandu on September 4-6. The protocol agreement, which was first conceptualized in 2016 following India's alleged economic blockade, will give Nepal access to four of China's seaports and three dry ports for trade with third countries. It is a major step in the direction to curb Nepal's dependence on India for trade.

"China has agreed to let Nepal use Tianjin, Shenzhen, Lianyungang and Zhanjiang open seaports and Lanzhou, Lhasa and Xigatse dry ports for trading with third countries," a statement issued by Nepal's Ministry of Industry, Commerce and Supplies read.

According to the protocol, Nepalese traders can gain access to the Chinese side after producing an electronic invoice. This is in sharp contrast to the current business norms applied while trading through Indian ports, wherein they have to produce the original invoice. The protocol is expected to be implemented in the next one month. Nepal will use six border points opened by the Chinese side to trade through these ports.
"We have agreed to use international standards in all processes. The process of negotiation has now ended," Ravi Shankar Sainju, joint secretary at the Ministry of Industry, Commerce and Supplies told local media in Setopati.

Nepal and China signed the agreement on trade and transit when Nepalese Prime Minister K.P. Sharma Oli visited China to explore alternate international trade routes after India stopped supplying essential commodities, including petroleum products to the Himalayan state, in an alleged bid to maneuver Nepal's constitution as per its own wish.

"We had talked about doing trade then. We have now agreed on how to do the trade. This is a significant achievement," Sainju added.

Nepalese commentator Kanak Mani Dixit further delved into the transit protocol and pointed out a very crucial part of it.

"The transit protocol does not specify paths, allowing Nepal to choose viable routes; additional ports and dry ports can be added without amending the treaty, and Nepali trucks plates may go all the way to Shigatse (Xigatse) railhead to pick up goods," Kanak Mani Dixit wrote on Twitter.


It was being widely speculated that the Nepalese side may delay the finalization of the protocol with China given Indian Prime Minister Narendra Modi's efforts to retune the bilateral ties. However, with the mounting public pressure on Oli, the agreement had to be concluded sooner. Experts are of the opinion that Nepal would now have to build an infrastructure network connecting to these Chinese ports.
"It is now time to make the roadways ready to link Nepal to Shigatse, only then can we say Bye Bye Blockade forever! For fastest and most practical connectivity, probably the Kimathanka Corridor in ProvinceNo1 should be prioritized," Kanak Mani Dixit added.

Nevertheless, India is also leaving no stones unturned to remain influential despite the Chinese overtures in Nepal. India is constructing two rail lines, while three more are being planned with an aim to lend fillip to bilateral trade ties. During the February visit of Prime Minister Oli to New Delhi, India had agreed on giving dedicated access to Nepal to the port of Vizag



Should rising China-Nepal military ties worry India? | ORF

There has been no shortage of references recently to the fact that China and Nepal are about to conduct a second round of joint military exercises, titled Sagarmatha, in Chengdu in Sichuan, China, next month. The two countries held their first joint military exercise, Sagarmatha Friendship 2017, for 10 days in Kathmandu in April last year.

Often neglected in a focus on headlines alone is the fact that it has been reported that there will be no more than 15 personnel taking part in this edition of the exercise. Nonetheless, even as the scale and sophistication of the China-Nepal joint military exercise is nowhere comparable to the kind that India holds with Nepal, it still raises hackles in New Delhi.

India does the Surya Kiran series of military exercise with Nepal twice a year, alternating between India and Nepal. The last one, SURYA KIRAN-XIII, was held in June this year. Reportedly, this series of military exercise with Nepal remains the “largest military exercise in terms of troop participation” that the Indian army undertakes with any other country. A press statement noted that that the focus of the exercise was on counterterrorism operations.

While India can find some solace in the depth of New Delhi’s relations with Nepal, India’s concerns nonetheless have been growing about this new facet of the China-Nepal relationship that has seen an uptick, particularly in recent years.

That concern is not entirely without reason. India’s own relations with Nepal have seen some testing times. More generally, Beijing’s proactive diplomacy in South Asia and the Indian Ocean remains particularly sensitive to New Delhi. While these are not new manifestations to be sure, China’s outreach has indeed picked up the pace in recent years.

The growing security ties between China and Nepal also comes in the wake of growing commercial and economic linkages as well. China pumped in more than $8 billion in investments in Nepal last year and overtook India as the biggest foreign investor three years ago. That is no small feat.

To be sure, it has not all been smooth sailing for China. For example, Nepal recently cancelled two massive hydroelectric projects that Chinese firms were contracted to build. Furthermore, Indian Prime Minister Narendra Modi has been stepping up his outreach to Nepal as well, making his third visit to Kathmandu in just four years.

But, for perspective, Modi’s latest visit was also to repair the damage done by the two-month long Indian economic blockade of Nepal in 2015, a move that had caused serious hardships for ordinary Nepalis. Everything from fuel to medicines and earthquake relief supplies were affected, resulting in a huge backlash against India in Nepal. This had happened in the backdrop of Nepal’s efforts to amend its Constitution and India’s efforts at championing the case of the Madhesi people, which made India a villain in the eyes of ordinary Nepalis. Following these events, Nepal’s outreach to China grew even as the Himalayan Kingdom attempts to maintain a balance in its relationship with these two giants on its border.

That balance appears set to continue. For example, former Prime Minister of Nepal and alliance partner of the Oli Government, P K Dahal Prachanda, is slated to visit India next month from September 7 to 12, a few days before he travels to China. Prime Minister Oli too had done this balancing act earlier this year, when he travelled to India first before he headed to Beijing.

All of this indicates that the Oli government is possibly just keeping its options open, and that there are really no major or dramatic changes to Nepal’s foreign policy in spite of individual moves that might be taken.

Yet India’s fears about China’s encirclement in the neighborhood are not without any basis. Chinese President Xi Jinping’s aggressive strategic pitch through his Belt and Road Initiative and debt trap diplomacy have seen the strengthening of China’s footprint in the Indian neighborhood.

The case of Sri Lanka’s Hambantota port is the oft-cited case in point. But the Maldivian government’s approach toward India is another instance of how the traditionally pro-India Maldives has turned against New Delhi, with support from China.

To be sure, India must shoulder its own share of blame for not managing these relations well. But the fact also is that for the smaller countries in the region, the economic incentives offered by China has been critical. Nepal’s decision to join the BRI will beef up Beijing’s role and presence in Kathmandu manifold. Similarly, Modi’s efforts to stem China’s influence in Nepal would depend on India’s ability to deliver on the promises made during Oli’s visit to India earlier this year, apart from any wider geopolitical calculations or moves.

It is worth keeping in mind that the fact that India and China are competing on similar projects including infrastructure development means this competition is likely to be lopsided. India does not enjoy a good track record in completing such ventures on time. The India-Myanmar-Thailand trilateral way is a case in point, with the project, initially conceptualized in 2002, seeing many delays and the latest update suggests 2021 as the completion date.

Certainly, in an election year, Modi will want to show clear successes in his neighborhood-first approach. But unless India strengthens its delivery capacity, New Delhi is bound to continue to lose to China. Ultimately, irrespective of what India’s neighbors do with China in the economic or military domains, New Delhi’s surest bet to shore up ties with these countries is to focus on shoring up its own reputation as a provider of security and prosperity. Nepal is no exception to this rule.
 
  • Like
Reactions: R!cK and Ashwin
Nepal Army Chief to be Conferred with Honorary Rank by India in January
Nepal Army chief General Purna Chandra Thapa will visit India next month where he will be conferred the title of honorary general of the Indian Army, a senior Nepal Army official said on Sunday.

It is a customary practice between the two neighbouring nations to award the honorary title to each other's army chief.

Chief of Army Staff General Purna Chandra Thapa will be leaving for India, his first international tour since taking charge of the Nepal Army, on January 11, Nepal Army spokesperson Brig Gen Gokul Bhandaree said.

During his six-day tour, General Thapa will be handed over the insignia of the honorary chief of the Indian Army by President Ram Nath Kovind at a function to be held at the Rashtrapati Bhawan, he said.

General Thapa will also meet Defence Minister Nirmala Sitaraman and visit some of the defence training institutes. He will return on January 16, Bhandaree said.

The Nepal Army chief, who took charge of the Himalayan nation's defence force on August 9, is visiting India on the invitation of his Indian counterpart General Bipin Rawat.

Earlier in July, General Rawat was in Nepal to receive the similar honour from Nepal's President Bidya Devi Bhandari.

The practice of exchanging the title of honorary chief has been going on since 1950.

Similar to the practice followed by Nepali prime ministers, there is a tradition in the Nepal Army that sees its chiefs make New Delhi their first international destination after taking command of the defence force.
Nepal Army Chief to be Conferred with Honorary Rank by India in January
 
India provides finance training to Nepali civil servants
India is providing public financial management training to civil servants from the Ministry of Finance in Nepal.

The Ministry of Finance has previously asked the government of India to provide training under the economic cooperation programme between the two countries, a Nepali news outlet reported.

The programme will help officials dealing with e-payment systems, accounting and cash management, accounting for loans, grants and repayments, pension payment systems, internal audit, fiscal responsibility and budget management.

The training will be held in three batches and the first of 20 Nepali officials began in New Delhi on 14 January. The Institute of Government Accounts and Finance is hosting the course called Global Perspectives on Public Financial Management.

The training course is taking place under the Indian Technical and Economic Cooperation programme of the Indian government.

The INGAF has trained officials from neighbouring countries like Afghanistan, Bangladesh, Bhutan, Maldives and Sri Lanka.

The government of Nepal is working on improving its governance to boost development and social transformation as part of its attempt to move away from ‘developed country status’.

Last January, CIPFA signed a memorandum of understanding with the Institute of Chartered Accountants of Nepal to help boost public financial management.
India provides finance training to Nepali civil servants | Public Finance
 
Nepal, India review trade treaty
Senior officials from Nepal and India met on February 7 in Pokhara to review the trade treaty between the two neighbours.

The Indian delegation is led by Bhupinder Singh Bhalla, Joint Secretary (South Asia), Department of Commerce, while Ravi Shankar Saiju, Joint Secretary, Ministry of Industry, Commerce and Supplies is leading the Nepalese delegation during the two day meeting.

This is the second Nepal-India Joint Secretary-level meeting to review the trade treaty that was signed between the two countries in 2009.

During the two-day meeting, India will respond to Nepal's proposal of updating treaty submitted in the first meeting held in New Delhi in August 2018, officials said.

Nepal has requested India to help reduce its increasing trade deficit through free access for its products in Indian market.

In April last year, India and Nepal agreed to review trade treaty to further promote trade and investments between the two countries.
Nepal, India review trade treaty
 
Over 70% India-aided reconstructions completed following Nepal quake
ANI | Asia Last Updated at April 26, 2019 14:00 IST

The United Nations Development Programme (UNDP) and the United Nations Office for Project Services (UNOPS) on Friday said that over 70 per cent of 50,000 houses which are being reconstructed through Indian aid following the 2015 Nepal earthquake have been built.

A 7.8 magnitude earthquake jolted Nepal in April 2015, leaving around 9,000 people dead in its wake and flattening scores of structures, including the prominent Dharahara Tower in Kathmandu. Following this, the Indian authorities pledged about USD one billion for reconstruction in Nepal in the form of grants and lines of credit.

Out of this, USD 150 million had been allocated for reconstruction in the housing sector, USD 100 million as grants and USD 50 million was to be drawn as a line of credit.

The construction of 50,000 houses in the Nepalese districts of Gorkha (26,912 beneficiaries) and Nuwakot (23,088 beneficiaries) is being supported by India. The Indian authorities had appointed UNDP and UNOPS as the socio-technical facilitation consultants for Gorkha and Nuwakot, respectively, in March last year.

In Gorkha district, which was the epicenter of the Nepal earthquake, 70 per cent of the reconstruction has been completed, according to UNDP.
"In Gorkha district, we have been giving support to 26,912 beneficiaries as part of the India-aided project. Among them, 70 per cent of the beneficiaries have constructed their house, 20 per cent are under construction and 10 per cent are yet to be constructed," Ram Sapkota, the district coordinator for the Government of India-supported Nepal Housing Reconstruction Project Gorkha told ANI.

Similarly, a total of 18,841 beneficiaries had completed the reconstruction of their houses in Nuwakot by March-end, data provided by UNOPS outlined. The agency added that a total of 2,767 beneficiaries have ongoing constructions in the district whereas 805 beneficiaries are yet to start their reconstruction.

The Indian effort has been widely appreciated by the locals. "The Indian government has helped us in building new houses with extensive research and investigation which is being liked by many, the new system of building the new houses using wires. They came over to Nepali villages and taught us the method of construction," said Ganesh Magar, one of the beneficiaries in Gorkha district whose house is being built through Indian support.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Over 70% India-aided reconstructions completed following Nepal quake
 
  • Like
Reactions: BlackOpsIndia