PM urged to discuss power-import deal

Leaders of Nepal's private sector have urged Prime Minister Madhav Kumar Nepal to forge an agreement with India regarding power import during his forthcoming India visit. This was conveyed to Prime Minister Nepal on Sunday when he met with representatives of the private sector to consult with them prior to his India visit.

Representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries, the Nepal-India Chamber of Commerce and Industry (NICCI), the Nepal Chamber of Commerce (NCC) and other business leaders were present during the meeting. "The prime minister sought the private sector's advice on the trade treaty," said Bhaskar Rajkarnikar, vice president of the FNCCI. The meeting was organized by the Prime Minister's Office to learn what the private sector expected from the prime minister's visit and its views on the Nepal-India trade treaty to which 14 new points are being added.

Among those 14 new points, four points are related to the control of illegal trade. While both the countries have agreed on three points--export of Nepali products to third countries through India, export of Indian products to third countries through Nepal, and entry of third-country products to Nepal through India. However, India is yet to agree on the export of third-country products to India through Nepal. PM Nepal met the representatives of the private sector to seek their views because this particular point could stall the signing of the treaty.

"We asked him not to stall the signing of the treaty on account of this particular point", said Kush Kumar Joshi, president of the FNCCI. With that detail taken care of, the private sector also gave the green signal to the PM to sign the revised trade treaty. During the PM's visit, both the countries will be signing treaties related to trade (upgrading the existing trade treaty), avoidance of double taxation, and investment protection. The trade and industry representatives did, however, want the PM to make a push for some of the other issues on the agenda: for example, they want the PM to negotiate a price for purchasing power from India if it refuses to provide it at a subsidised rate. "We told the prime minister that Nepal should negotiate a power-purchase agreement for at least 200 MW during his India visit," said Rajendra Khetan, chairman of the Khetan Group.

The representatives also urged the prime minister to initiate talks with his Indian counterpart for the formation of a joint mechanism led by at least the state ministers of the two countries to look into issues and problems related to Nepal-India trade and transit. Prime Minister Nepal is leaving for New Delhi for an official visit on Aug. 18, accompanied by team of various businessmen from Nepal, including the FNCCI president as part of the delegation.
Source: Kantipur