Nepal India firms wrap up Negotiations

                            Nepal India firms wrap up negotiations

  The Investment Board nepal and India GMR consortium have ended protracted negotiations to reach a power development agreement for the 900 megawatt Upper karnali Hydropower project . After over a year of negotiations both the sides gave final shape to the PDA on Friday. The deal will be a landmark between Nepal and India in hydropower development as it will open new avenues as it will open new avenues ofr foreign investment in the sector that remains largely unutilised. According to government sources an IBN board meeting on Saturday morning will endoorse the agreement.A cabinet meeting will give its final consent to the deal later in the day .The IBN and a high level GMR team have been in talks for five days in their offort to singn a final agreement during Indian prime minister Narenda Modi’s visit . Highly placed sources say the final singning og the deal will likely happen on Sunday between the GMR and the IBN. The PDA draft is ready said the source IN the last round of negotiations both the contentious issues such as dividend on the 27 percent free equity given to Nepal on the project impact on irrigation schemes and benefits for locals.Sources say the final document addresses the concerns expressed by the IBN political parties and the locals in project affected areas . GMR has agreed to allow the use of transmission lines to be built projects and to sell the infrastructure to Nepal if required later. Nepal also gets the first priority to buy the remaining power after GMR sells 55 percent energy to another party. GMR has agreed to upgrade the transmisson capacity if required to allow evacuation of energy generated by other projects in the area Initially GMR will be constructing a 400kv transmission line for upper karnali.

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