India-Nepal Relations

Ashwin

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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
 
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BlackOpsIndia

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Both Oli and Rajapakshe are politicians, they now know very well what India can do and they will be reasonable, they can award as many contracts putting India in trouble and all of it will be taken care when they are thrown out.

Only one yet to understand this on loud and clear terms is Abdulla Yameen.

Unfortunately for both India and these countries there is no alternative, geographical and cultural situation makes China a marginal player at best, if they are not realizing it yet they will realize it after 10 years of rigorous testing of new friend.

There was a reason why all of these countries were ruled by Indian kings, directly or via governors for almost forever. Even with mordern means of communication and transportation it's still India all the way to the end.


As Vajpayee ji said you can change your friends but you can't change your neighbors.
 

screambowl

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China will even buy the electricity or in addition to that they will install an industry complex near dam for power utilization. They have money.
 

Srinivas

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China will even buy the electricity or in addition to that they will install an industry complex near dam for power utilization. They have money.

The message from India is loud and clear.

China itself is a powersurplus country, in-spite of economic development still most of its people are in lower income bracket. So china buying power and building industrial capacity is out of question.

Even if they build industrial capacity, they will export the labour to Nepal.
 

screambowl

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The message from India is loud and clear.

China itself is a powersurplus country, in-spite of economic development still most of its people are in lower income bracket. So china buying power and building industrial capacity is out of question.

Even if they build industrial capacity, they will export the labour to Nepal.

No they are doing it in Bangladesh. This is their plan. generate power in Bhutan and Nepal export it to Bangladesh, Pakistan, Myanmar and even India if it agrees.
 

_Anonymous_

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No they are doing it in Bangladesh. This is their plan. generate power in Bhutan and Nepal export it to Bangladesh, Pakistan, Myanmar and even India if it agrees.
Please see explain how does China generate power in Bhutan & Nepal & export it to Bangladesh , Pakistan or even Myanmar . India is ruled out since we're not going to be buyers of Chinese electricity from plants built , operated & generated by the Chinese in those nations or even Bangladesh.
 
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screambowl

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Please see explain how does China generate power in Bhutan & Nepal & export it to Bangladesh , Pakistan or even Myanmar . India is ruled out since we're not going to be buyers of Chinese electricity from plants built , operated & generated by the Chinese in those nations or even Bangladesh.

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!
 

RedCannon

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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!

Does not work that way. Even if, and that a big if, we allow then we will charge huge transmission fees.
 
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Ashutosh

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China will even buy the electricity or in addition to that they will install an industry complex near dam for power utilization. They have money.

China is already energy surplus, Installing transmission lines over Himalayas is not feasible. China can install industry but in the end that industry has to sell. without access to the Indian market Nepal will literally lose everything. As the logic goes with CPEC, without access to Indian market the project is failure.

China has about 50% of the worlds production capacity on literally everything under the sun. They cannot conume what they produce let alone consuming from Nepal's production.
 

Ashutosh

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No they are doing it in Bangladesh. This is their plan. generate power in Bhutan and Nepal export it to Bangladesh, Pakistan, Myanmar and even India if it agrees.

India can simply deny right of way like Pakistan denies it to Afghanistan and India. Nepal is either playing the wrong gamble or probaly are becoming a colony of China. Just like Maldives and Pakistan.
 

screambowl

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Does not work that way. Even if, and that a big if, we allow then we will charge huge transmission fees.
without access to the Indian market Nepal will literally lose everything
India can simply deny right of way like Pakistan denies it to Afghanistan and India. Nepal is either playing the wrong gamble

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*
 

Ashutosh

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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*


Nepal has no option, India will do what is it in its national interest, deals are cut that way. and every side plays its hands. Other than Pakistan (who are essentially China's abused pet) we have sufficient leverage ove all countries. We will paly our hand.
 

screambowl

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Nepal has no option, India will do what is it in its national interest, deals are cut that way. and every side plays its hands. Other than Pakistan (who are essentially China's abused pet) we have sufficient leverage ove all countries. We will paly our hand.

"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,"

This is what India said. I guess you have no idea what you are discussing and have narrow knowledge on the issue. Please do your homework before quoting foolishly.
 

Ashutosh

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"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,"

This is what India said. I guess you have no idea what you are discussing and have narrow knowledge on the issue. Please do your homework before quoting foolishly.

It means that if India buy power it will be from Indian investment in Nepal, we will not act as a market to Chinese investment. this is what it menas. Nepal gets that we are safeguarding our National Interest.

"Please do homework/Quoting Foolishly" Ad hominem Points will not be entertained. Please put a logical point forward.
 

_Anonymous_

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"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,"

This is what India said. I guess you have no idea what you are discussing and have narrow knowledge on the issue. Please do your homework before quoting foolishly.
Nepal can't afford to antagonise India , no matter what . Apart from trade , there's a huge no of their citizens employed here in the services or other activities all of which contribute significantly to their economy . Add the fact that these Nepalese citizens are here without a work permit or even a passport . Factor that in with what the Nepalese share with China and you'd see why the Chinese have little leverage over Nepal.

Nepal can squeal and protest to their heart's content but if India doesn't play ball , all those Chinese investments will be white elephants and what's more those liabilities will be that of the Nepalese to bear .
 
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screambowl

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It means that if India buy power it will be from Indian investment in Nepal, we will not act as a market to Chinese investment. this is what it menas. Nepal gets that we are safeguarding our National Interest.

"Please do homework/Quoting Foolishly" Ad hominem Points will not be entertained. Please put a logical point forward.

The logic is what is CPEC for? For Indian Market? No for Chinese presence in the region.
Is the dam they are building for revenue/power generation? No for bribing the leaders and making their presence. You think the leaders there approving the project because they want to fulfil the energy requirements? No

Nepal has already made a statement that they will be a part of OBOR.


Nepal can't afford to antagonise India , no matter what .
Open your eyes, they already have.
And as I previously mentioned China will start bringing India in bad light and it has started

see the propaganda has started


India must rethink attitude toward Nepal’s changing relationship with China - Global Times
 
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