July 12: Prime Minister Pushpa Kamal Dahal after his recent state visit to India, had said that the Indian side had agreed to go ahead with the Pancheshwar hydropower project.

Dahal conveyed the message to the parliament that Nepal and India had agreed to finalize the Detailed Project Report (DPR) of Pancheshwar project within three months and prepare the investment draft within a year. The construction of the Pancheshwar hydropower project has been ongoing since the signing of the Mahakali Treaty almost three decades ago in 2052 BS, without any tangible achievements.

It seems that PM’s Dahal's announcement to "complete the DPR within three months and prepare the investment draft within one year" is not likely to happen anytime soon.

There is concern among the general public that this agreement will expire like the previous agreements, and Pancheshwar project won't move ahead.

After the signing of the Mahakali Treaty between the Government of Nepal and the Government of India, it was first decided to implement this project with bilateral investment and operate it jointly.

It is said that a total of 6,480 megawatts of electricity will be generated from this reservoir-based hydropower project. The average production is estimated to be 10,671 gigawatt hours per year.

In 2066, in the joint meeting of the Ministry of Water Resources of Nepal and India, it was agreed to establish the Pancheswar Development Authority and complete the DPR and other necessary works to advance the Pancheswar Hydropower Project. Accordingly, the Pancheswar Development Board was also formed. But the board has not done anything significant so far.

Since the commitment to proceed with the construction of the Pancheshwar Hydropower Project is made time and again but is not implemented, questions have started to arise about the reason for the delay. Hydroelectrician Anup Kumar Upadhyay says strong political commitment from both countries is needed for the construction of the project to go ahead.

"In the case of Pancheshwar, there seems to be a lack of commitment and willingness to build the project from the political level," he said, adding, "Differences in interpreting the Mahakali Treaty and the issue of water distribution is delaying the project."

Radhesh Pant, an expert in the hydropower sector and a former executive officer of the Investment Board, believes that Pancheshwar will be of a great significance.

“If Pancheshwar is built, both Nepal and India can benefit. This project will also have a positive impact on the people's lives. Apart from energy, the Pancheshwar hydropower project can have many positive outcomes,” he said.

As Pancheswar is a reservoir-based project, it is also possible to collect flood water from the Mahakali River and use it for irrigation during dry season to increase food production. It is said that the dam of the project will be 315 meters high.

Despite many benefits, Pant is not confident that the stalled project will move forward. There seems to be a practice of agreeing and not implementing the project.