Stating that it is seriously concerned over the threat issued by the Morcha, the Ministry said in a statement Wednesday that the survey license for the project was awarded as per the existing law of the land. [break]
The project is a private-sector joint venture between Nepal and India. The survey license is owned by Himtal Hydropower Company Pvt. Ltd., which has 20 percent share investment by Nepalis and 80 percent by GMR, the Indian infrastructure development company.
The statement said that GMR was given the investment share as per permission from the Investment Promotion Board and the company has been undertaking a study in coordination with an all-party stakeholders´ committee at the local level. It had even initiated social welfare projects in the area, working with mothers´ groups.
On Monday, Morcha representatives submitted a memorandum at the project site demanding that all construction work be scrapped and all study work stopped immediately.
The Ministry statement also said that political groups must not engage in activities that discourage foreign investors in Nepal, especially at a time when they are keen on promoting investment in the country.
Earlier, speaking to myrepublica.com, Minister for Energy Dr Prakash Sharan Mahat said the project study “will not be stopped under any circumstance.” He added that the Indian investors will be given “full security guarantee.”
Stating that the project is only at the study phase, Mahat said construction work will start only after conclusion of the study. He said the government will determine the profit, budget and impact of the project on the basis of the study. GMR is currently undertaking the Detailed Project Report and an Environment Impact Assessment.
Maoists had issued a similar threat against the Upper Karnali project, being developed by a GMR-ITD Consortium, last month. Related work at the Upper Karnali is yet to resume. The UCPN(Maoist) launched the project closure drive as part of its phase-four struggle against ´Indian interference.´
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