Days of shortages over.

Nepal wish-list for Oli’s India visit; projects on infra, hydel, power

Nepal resumes regular fuel distribution five months after crisis

Anil Giri | Kathmandu | 12 February, 2016 | 06:50 PM

Ahead of Nepal Prime Minister K.P. Sharma Oli's upcoming visit to India, Kathmandu has finalised a comprehensive wish list it wants New Delhi to fulfill. Meanwhile, five months of economic blockade ended with regular supply of petroleum products in the Himalayan kingdom.

Projects related to infrastructure and hydel development and power transmission top Oli’s agenda for the six-day visit commencing February 19, officials here said.

The wish list for Oli’s visit — his first foreign tour since assuming office in October last — includes finalisation of two hydro-power projects of a total 750 MW capacity that have been on the table for quite some time now.

The two projects together would cost about $1 billion.

Nepal is estimated to have the potential to generate 42,000 MW of hydropower but today produces 800 MW — far less than the domestic demand of 1,400 MW.

The two power projects were among agenda-points that Nepal’s Finance Minister Bishnu Poudel had proposed to his Indian counterpart Arun Jaitley and Indian External Affairs Minister Sushma Swaraj during a visit to New Delhi earlier this month.

India has already promised $2 billion in aid during Prime Minister Narendra Modi’s visit to Nepal in August 2014.

Another $1 billion in assistance was pledged by India in June 2015 at the International Conference on Nepal’s Reconstruction following the April 2015 earthquake.

Out of the $1 billion, $250 million is aid and the remaining $750 million is soft loan to carry out various post-quake reconstruction works.

The other major proposals on Oli’s wish list are completion within five years of the India-assisted Hulaki Road (postal road) project in Nepal’s southern Terai area; laying of cross-border power transmission lines and developing a state-of-art hospital in Kathmandu.

Nepal and India have recently installed 400 kv power transmission lines and have also proposed to build six power corridors at various border points.

According to finance ministry officials here, Poudel also sought Indian assistance to build one national institute of technology, establishment of eight technical schools and the setting up of an ayurveda university.

Other areas of discussion are the early implementation of the 6,720 MW Pancheshwor multipurpose project, construction of a second international airport in Nepal, and fast-tracking of construction of the Kathmandu-Terai road besides some security issues.

Nepal relies heavily on foreign aid and assistance from India has contributed to major infrastructure development in the Himalayan nation.

Grants from India helped to build the airport in Kathmandu, the flood control Koshi Barrage, Bir Hospital in Kathmandu, Trauma Centre, a number of irrigation projects and important highways like Tribhuvan Highway — connecting capital Kathmandu to the Birgunj-Raxaul border with India — and Siddhartha Highway — connecting the Terai region in southern Nepal with the mountain region in northern Nepal.
After more than five months of economic blockade and a resulting fuel crisis, the Nepal government on Friday commenced regular public distribution of petroleum products.

A meeting here on Thursday, chaired by Commerce and Supplies Minister Ganeshman Pun, scrapped the quota system for fuel distribution that had been introduced after blockading of the Nepal-India border by anti-Constitution protestors led to a scarcity of essential commodities including food, fuel and medicines.

The situation has normalised now following resumption of regular fuel supplies by the Indian Oil Corporation after the Medhesi protestors lifted the border blockade last week, Xinhua reported.

According to state-owned oil monopoly Nepal Oil Corporation (NOC), fuel will be distributed to the public on a regular basis from 114 fuel stations in the Kathmandu valley.

However, in the initial phase, NOC has decided to provide only five litres of petrol to two-wheelers and 15 litres to four-wheelers at a time.

The development follows the reopening of the key Raxaul-Birgunj trade transit route last Friday. the Raxaul-Birgunj border point remained blockaded for almost more than four months.

According to NOC, daily requirement of petrol and diesel across the country stands at around 1.1 million litres and 2.6 million litres, respectively.

Though Indian Oil Corporation has increased the supply of liquefied petroleum gas, NOC has yet to decide on resumption of regular distribution of cooking gas cylinders to the public.

The country’s monthly demand of LPG hovers at around 30,000 tonnes. (IANS)