Nepal, India to discuss stalled Pancheshwar project in September

Nepal and India are set to hold crucial talks in early September, aiming to break the deadlock on the long-delayed Pancheshwar Multipurpose Project. This bilateral water resources meeting, the first in four years, will also address other issues stemming from the Mahakali Treaty.

The agenda includes discussions on a proposed link canal from the Tanakpur Barrage to the Nepal border, irrigation water supply to the Dodhara Chandani area, the Saptakoshi High Dam Multipurpose Project, and the Sunkoshi-Kamala Storage-cum-Diversion Scheme. The Joint Committee on the Koshi and Gandak Projects, as well as the Joint Committee on Inundation and Flood Management, will also review their progress.

Officials confirm the Pancheshwar project is a primary focus, with India reportedly showing increased readiness to resolve outstanding differences. This comes after Nepal's Foreign Minister visited India in June, leading to an exchange of proposed agendas. Both nations are finalizing their positions on key modalities, including investment, water and energy benefits, irrigation, and flood control.

The project has languished for decades, plagued by a lack of political will, inconsistent approaches, disagreements over cost-sharing and benefit distribution, energy pricing, and environmental concerns. Nepal has proposed a 30:70 cost-sharing ratio, while India suggests bearing 65 percent of the cost. The Mahakali Treaty was signed in 1996, and numerous discussions have since failed to finalize the Detailed Project Report and settle critical issues.

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Both sides are exchanging their proposed agendas for the overall water resources discussions as well as Pancheshwar-related issues.