Much-delayed pact will come through during Modi’s visit tomorrow

Barring a last-minute unseen hurdle, the Nepal government would sign the much-delayed project development agreement (PDA) for the 900MW Upper Karnali hydropower project with the Indian multinational, GMR, during Prime Minister Narendra Modi’s visit beginning Sunday.

According to a source privy to the contents of the draft agreement which is to be finalised by the Nepal Cabinet on Saturday, Investment Board Nepal — a government body mandated to handle mega projects in the country — and the Upper Karnali project promoter, GMR, would sign the agreement on Sunday. He requested anonymity since he was not authorised to speak on the contents of the draft agreement.

The source told The Hindu that Nepal’s Prime Minister Sushil Koirala had sought consent from his coalition partner, the Communist Party of Nepal-Unified Marxist Leninist, and the main Opposition, the Unified Communist Party of Nepal (Maoist) over signing the PDA with the Indian multinational company. “PM Koirala has asked the (CPN) UML and the (UCPN) Maoist to get the decision endorsed by their parties,” the official said. “However, Maoist Chairman [Pushpa Kamal Dahal] Prachanda said their verbal approval was enough.”

The official said they were expecting opposition to the PDA agreement from the hardline Mohan Baidya-led CPN-Maoist. In public, even Prachanda and his other party colleagues have asked the government to go slow with any power-related agreement with India.

However, Madhes-based parties have urged Mr. Koirala to sign the PDA with GMR, sign a power trade agreement and enter into other agreements with India, including completing the postal highway through Madhes. They made this suggestion in a memorandum which they handed over to Mr. Koirala.