 |
 |
 |
 |
 |
 |
 |
Note no. 474
04-Oct.-2008
NEPAL: Significant Meeting on Water Resources- Update No. 174
By Dr. S. Chandrasekharan
The Nepal India Joint Committee on Water Resources resumed bilateral talks after a gap of four years and concluded a comprehensive 29 point agreement on the development of water resources of Nepal. Some of the major points of agreement included-
· Pancheswar Development Authority will be formed to expedite the implementation of the 5600 MW project.
· India will repair the Sapthakoshi embankments by next March 2009
· Experts of both countries to meet in November 2008 to discuss technical aspects of the breached embankments.
· India to carry out feasibility study of 250MW Naumure project of the West Rapti river in three months.
· Dead line fixed for study of Sunkoshi-Kamala diversion project extended by one year.
· India to build an unregulated opening at Laxmanpur to tackle inundation menace and not to construct any structure around Mahalisagar for now.
· India to take immediate precautionary measures to control inundation in Nawalparasi District.
· Embankments to be built on the Mechi river.
· Indian team to study the irrigation prospects of Kapilavastu districts.
· India to build a 12-km Mahendranagar-Brahmadev road.
Though it cannot be called a historic one, the agreement can be called a success from the Indian point of view if the Nepalese side had realised that the water resources in Nepal would need to be developed for its own sake and not for the benefit of India alone.
The Nepalese media called it a"win-win" pact and it is indeed so, as the benefits that will accrue from the agreement would mostly favour Nepal though India being in the downstream would also benefit marginally.
Much depends on the Indian side to adhere to the time limits agreed to and the water resources ministry in India will have to ensure that this is done.
Nepal India relations on water resources have been bedevilled by mutual distrust and suspicion on the part of Nepal that it does not have a level playing field in dealing with India on development of water reasons.
This suspicion has a historical background and cannot be erased with one such agreement now entered into. Any fresh agreement will have to move cautiously built brick by brick and any move to make on overall agreement will be counter productive.
It is certain that the high dam on Kosi at Barahakshetra would also have been discussed. This project has been discussed many times and Nepal is not ready yet for any such major bilateral project. This can wait. Alternatives to tame the Koshi river without the high dam may have to be explored. Jacketing the river banks from the place where Kosi debouches into the plains cannot be the only solution. There could be other ways.
India has been generous and it is hoped that this will be the beginning of a new era on the development of water resources of Nepal for mutual benefit. Much would depend on the political will and maturity of the Maoist government who will have to realise that development of water resources in Nepal is a must in the context of economic goals and socio economic objectives the government has in mind for the well being of Nepal.
PM’s Visit to the United Nations:
It looks that PM Prachanda was satisfied with his UN visit. The media described it as a "dream visit". Besides meeting President Bush he met many other international dignitaries. He called on the UN Secretary General Ban-Ki Moon and invited him to visit Nepal. This was promptly accepted.
While meeting President Bush, Prachanda did not discus the issue of Nepal being blacklisted but raised it with other US officials. He said "Tell me why the US leadership has not changed their position? If there is any problem we are ready to discuss."
He also said that they (Maoists) have come this far in the democratic process and that the US should rethink its position as soon as possible and that it would be better for both US and Nepal to do so.
Debate on future set up of the country:
A serious ideological debate was started by Prachanda on the future set up of the country when he declared on 19th September that Nepal can neither remain static by following parliamentary democracy nor it can have socialism outright.
One of the senior members of the Maoists leadership Posta Bahadur Bogati expanded this theory and said- " By people’s democracy we mean a system that addresses the concern of the marginalised communities and the poor. Pointing out that the parliamentary democracy has many shortcomings he said that they want competition but on some issues want a consensus only to avoid the "vices of parliamentary system."
These statements will have to be seen in the context of Mohan Baidya’s remarks a week earlier that his party is advocating "non parliamentary multi party system to do away with the shortcomings of the communist rule."
In essence are the Maoists looking for a non parliamentary multi party system or a communist people’s republic? It is still not clear what they have in mind. One thing is clear however that they do not want a multi party system of the type they had in the 1990 Constitution.
The Budget:
On 19th September, Finance Minister Baburam Bhattarai presented the budget, In presenting the budget he said that they (the Maoists) wanted to break from the tradition (whatever it meant!).
Some relevant details of the budget that are:
· Total outlay- Rs 236.15 billion
· Recurrent Expenditure- Rs 128.51 billion
· Capital Expenditure- 91.31 billion
· Repayment of loans- Rs 16.8 billion
· General Administration Rs 111.82 billion
· Development Programmes Rs 124.19 billion
· Non budget deficit Rs. 41.11 billion
- Projected GDP Growth- 7 %
- Agricultural Growth 4.5 %
- Non Agricultural growth 8.3 %
- Inflation to be pegged at 7.5 %
The budget is set to focus on key social sectors that include education, health, Dalits, Women, Madhesis and marginalised communities. To this extent it is a populist budget.
Major challenges as envisaged by the minister would include
- Under development and absolute poverty
- Stagnation of agricultural sector
- Rampant unemployment and semi employment
- Inequality and discrimination.
- Inadequacy of physical infrastructure
- Educational discrimination and deteriorating quality of public education
- Corruption and poor quality of work culture
- Bringing the peace process to a logical conclusion.
The estimated expenditure is higher by 39.7 percent. The budget has planned to raise 129.21 billion from current sources of revenue. Foreign assistance is expected to stand at 67.79 billion ( 47.93 grant and 18.70 as loan). The deficit is pegged at 42.11 billion. ( marginally doubled)
Former finance minister Dr. Mahat of Nepali Congress has said that it is not growth oriented. He pointed out that the revenue projection is grossly exaggerated and is impractical and would lead to high deficit and inflation.
This being the first budget from a Maoist government, this will necessarily be an ambitious budget and in some cases there will be over expectations.
In all the budget can be termed as a "bold one" and sincere efforts have been made to match their ambitious socio economic goals with the ground realities.
Home | Papers | Notes | Forum | Search | Feedback | Links
Copyright © South Asia Analysis Group
All rights reserved. Permission is given to refer this on-line document for use in research papers and articles, provided the source and the author's name are acknowledged. Copies may not be duplicated for commercial purposes.