Sector Update

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Nepal India Cooperation on Hydropower

The need of co-operation in the hydroelectric sector between Nepal and India has been emphasized by various stakeholders for the last almost five decades. However, there is very little progress to show on ground so far. Lack of co-ordination between government agencies on both sides, lack of pace and direction in the co-operation dialogue, complexities arising due to power-water nexus, absence of private participation in the process and non-availability of physical infrastructure have been some of the conspicuous factors for the tardy progress, which is a matter of serious concern.

To study and analyse these factors along with some of the other less apparent factors and to evolve an implementable roadmap of hydroelectricity co-operation between the two countries, Independent Power Producers of Nepal (IPPAN) and Confederation of Indian Industry (CII) undertook this study titled Nepal-India Co-operation on Hydroelectricity (NICOH) under USAID sponsored SARI/E Small Grants Scheme, jointly managed by Winrock International and Institute of International Education.

The South Asia Regional Initiative for Energy Cooperation and Development (SARI/Energy) promotes sustainable economic prosperity by fostering mutually beneficial energy linkages among the nations of South Asia. SARI/Energy has built a network of stakeholders and potential investors that appreciate the economic, policy, financial, contractual and investment advantages and requirements for increased energy cooperation in South Asia. Based on feedback from these regional stakeholders, the SARI/Energy program is supporting the design and implementation of specific cooperation opportunities and disseminates lessons learned from other successful energy initiatives, such as the Southern African Power Pool and the Rural Electrification Board in Bangladesh.

This Report is a single volume divided into several sections, sub-sections covering different aspects of hydroelectric co-operation between the two countries. It is hoped that the Study findings will be useful to all stakeholders – in India and in Nepal – in making decisions on future policies, strategies and work plan for furthering electricity cooperation and trade.

Rajesh Menon
[Deputy Director General]
International Department (CO)
Confederation of Indian Industry
CII Central Office
Mantosh Sondhi Centre
23 Institutional Area
Lodi Road
New Delhi
Phone : 91-11-24629994 - 7
Fax :91-11-2462 6149
Email :