Contrary to the Maoist claim that the licenses for the 14 projects, to be implemented mostly with Indian investment, were issued trampling on parliamentary procedures, the government argued, they had received the nod in compliance with legal obligations.[break]
Minister for Energy Dr Prakash Sharan Mahat termed the Maoist remark an irresponsible one in the light of the fact that signing of Power Development Agreements (PDA) are on the cards for seven out of the 14 projects.
“The government is deeply concerned with regards to the opinion of the Maoists and is committed to providing security to the ongoing projects,” Mahat said.
In February this year, the UCPN (Maoist) had obstructed work at the Upper Karnali and Upper Marsyangdi projects, which have Indian investment. But the Maoist leadership blamed their local leaders for the wrongdoing, saying the party did not have any policy to target the projects. The government had even held talks with the Maoist leaders to resolve the problem.
India had taken up very seriously the security situation facing Indian investors in Nepal during the visit here of Indian External Affairs Minister SM Krishna early this year.
The projects targeted by the Maoists this time include Upper Karnali (900 MW), Tamakoshi 3 ´A´ (880MW), Upper Marshyngdi (600 MW), Arun III (402 MW), Lower Arun (400 MW), Balefi (50 MW) and Likhu (34 MW), which are awaiting PDA and four of which are being developed by Indian investors, either solely or through joint ventures.
A project reaches the PDA stage after carrying out a detailed feasibility study whereby it will be ready to move into the construction phase within two years.
Dr Mahat said the Indian investors in the projects have already expressed to ministry officials their grave concern over the Maoist call to obstruct them.
Earlier, the Maoist Department of Water Resources and Energy had said the ongoing hydropower projects will have to be endorsed by the Parliamentary Committee on Natural Resources before they can move any further.
“The Maoists, in seeking parliamentary endorsement of the projects before completion of the PDA, are merely trying to turn it into a political issue,” Mahat said. "The government urges the Maoist party to withdraw its announcement."
IPPAN, CNI concerned
The Independent Power Producers´ Association Nepal (IPPAN) and the Confederation of Nepalese Industries (CNI) have expressed serious concern over the Maoist move.
Issuing separate statements, both organizations said it was a matter of grave concern that the Maoists have made public their intention to halt 14 projects that have already been granted feasibility study licenses by the government.
The statements further said that at a time when foreign investors are not so keen on pouring in their funds, the announcement by the Maoists will have adverse effect on foreign investment in Nepal.
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