The export of hydropower to India will create a win-win situation for both South Asian neighbours, according to newly appointed Indian envoy to Nepal.
“Nepal has a huge potential of hydropower – that is a clean energy – while India is also trying to replace thermal power plants for more cleaner options like hydro,” said Indian Ambassador to Nepal Ranjit Rae, at an interaction held by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today.
“If Nepal can supply hydropower to India, it will be good for both the countries,” he said, adding that steady flow of energy is indispensable for India to achieve the targeted growth rate, whereas hydropower export could help Nepal bridge the widening trade deficit gap with India.
Both the countries have ample legal base for increased business cooperation, also due to recent Bilateral Investment Promotion and Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) apart from trade and transit treaties,” the newly appointed envoy said, adding that the private sectoer of both the countries need to take advantage from the latest developments.
India not only has a political will for cooperation, it has been supporting Nepal in construction of physical infrastructure to facilitate trade, he added. “The business communities need to work closely and engage among themselves.”
On the occasion, FNCCI president Suraj Vaidya highlighted the importance of Indian direct investment in Nepal. “Despite problems, economy is getting better,” he said, adding that both the countries can benefit by doing business together. The FNCCI also requested the newly appointed Indian ambassador to Nepal to help bring more foreign direct investment in the country.Officials at the FNCCI, on the occasion, underlined the need for bilateral investment in Nepal’s hydropower sector so as to meet energy demand in both the countries.