Friday, October 8, 2010

Arun III

October 8, 2010
Manoj Goyal

Manoj jee

Thanks a lot for sparing time from your busy scheduled to meet me yesterday.

I would like to take this opportunity to record my opposition against the captioned project, as conceptualized now, for posterity in contrast to your opinion that this project should be allowed to be implemented as it is.
  • You agreed with me that the current level of demand of the eastern development region of about 250 MW is based on suppressed growth, evidenced by extant industries not being able to run at full capacity and new industries not being able to be set up for dearth of power. Therefore, if available, this region could easily consume about 400 MW right now and after 5 years this region alone will need more than 600 MW.
  • You opined that this project should be allowed to be implemented as export oriented as an array of projects of about 20 MW could be built for consumption domestically in this region. This logic is untenable as Nepal will need to build around 29 projects of 20 MW in next 5 years. But, unfortunately, this many projects are not in the pipeline ready for implementation, to be commissioned in 5 years’ time. Only a very few projects are at this stage including Kabeli A, cumulative total of these will not even be 100 MW. Due to this reason, export of power from the captioned project will starve this region of power further and stunt the growth.
  • Due to unique hydrology of this river and its cost effectiveness of this project (expected to cost $ 1,000/kW) exporting power from this project will mean exporting good quality cheap power while Nepal will be starved for power or if projects generating power in necessary quantum is to be built, this region will be deprived of cost effective good quality power. I wonder if you are aware that Kabeli A costs more than $ 2,000/kW.
  • Nepal has invested a huge amount in bringing this project to the current stage, through feasibility studies, preparation of DPR etc. In my considered opinion, therefore people of Nepal should benefit from the past investment instead of people across the border.
  • Most importantly, building hydropower project for consumption in India requires parliamentary ratification. These people are determined to breach this constitutional provision and impair the authority of the parliament. This is not acceptable no matter what.
  • Furthermore, this will set a bad precedent, from the perspective of constitution as well as cost effective site. No project should be built in contravention of Nepal's constitution. Moreover, Nepal should set right precedent by implementing project like this in Nepal's interest.
With best regards,


Ratna Sansar Shrestha, fca
Senior Water Resource Analyst

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