Stalled Negotiations on Pancheshwar Multipurpose Project | 09 Mar 2024

Source: TH

Despite the recent signing of an agreement on long-term power sharing between India and Nepal, progress on the Pancheshwar Multipurpose Project (PMP) remains at a standstill.

• The impasse surrounding the PMP, particularly concerning the equitable distribution of benefits, poses a challenge to the advancement of relations between India and Nepal.
• In January 2023, India and Nepal signed a bilateral agreement for the export of 10,000 MW of power in the next 10 years.
• Pancheshwar Multipurpose Project (PMP) is a bi-national hydropower project to be developed on the Mahakali River bordering India and Nepal.
  • India and Nepal had signed a Treaty known as Mahakali Treaty in February, 1996. Implementation of the Pancheshwar Multipurpose Project is the centrepiece of the Mahakali Treaty.

Read more: India and Nepal Relations