Nepal Parliament Panel Okays Energy Deal With India

KATHMANDU: A parliamentary panel in Nepal asked the government to sign as soon as possible a "Power Trade Agreement" (PTA) with India under which New Delhi has proposed 100 percent Indian investment or joint ventures with Indian entities in the Himalayan country's power sector.

Both sides held marathon negotiations during the weekend visit here of India's External Affairs Minister Sushma Swaraj to firm up a deal.

"Large-scale investment is inevitable in the energy sector but investment will become uncertain in the absence of a power trade agreement. As a result, a PTA is necessary with India," read a statement on the committee's decision.

Reading out the statement, lawmaker Amrit Kumar Bohara, who chaired the meeting, said such an agreement "was necessary to attract investment", and emphasized on the need for concrete homework and coordination between the government and the committee on the same.

The PTA, however, has courted a lot of controversy in Nepal, as it has been alleged that India would capture Nepal's natural resources and monopolies its water resources.

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