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    INDIA-NEPAL COOPERATION

    1.0 Pancheshwar Multipurpose Project:

    India and Nepal had signed a Treaty known as Mahakali Treaty in February’1996. Implementation of Pancheshwar Multipurpose Project is the centerpiece of the Mahakali Treaty. Required field investigations for the Pancheshwar Multipurpose Project have been completed by a Joint Project Office (JPO-PI) in 2002 (except for some confirmatory tests). But mutually acceptable DPR of Pancheshwar Project is yet to be finalized.

    The constitution of PancheswarDevelopment Authority has already been notified. (Attached at Appendix-I)(433 KB)

    Pancheshwar Multipurpose Project (PMP) is a bi-national Multi Purpose Project, primarily aimed at energy production and augmenting irrigation in India and Nepal.

    A Treaty known as “Mahakali Treaty” concerning the integrated development of the Mahakali River, which included Sarada barrage, Tanakpur barrage and Pancheshwar Dam Project, was signed between the Government of Nepal and the Government of India on February 12, 1996. During the year 2009, pursuant to the Article -10 of the Mahakali Treaty, the Government of India (GoI) and the Government of Nepal (GoN) agreed and framed draft ToR for setting up the Pancheshwar Development Authority, as an independent autonomous body, for development, execution and operation of the Pancheshwar Multipurpose Project as also to finalize its Detailed Project Report. To accomplish this shared goal, the Terms of Reference (ToR) of the PDA as agreed upon by the two Governments and as may be amended from time to time, were created. As per the Statute of PDA the administrative organs of the authority are the Governing Body (GB) and the Executive Committee (EC). In order to execute the specific tasks assigned to the Governing Body, five meetings of GB have taken place so far.

    Pancheshwar Main Dam is proposed on river Mahakali (known as river Sarada in India), where the river forms the international boundary between the Far Western Development Region of Nepal and State of Uttarakhand in India. The dam site is around 2.5 km downstream of the confluence of river Sarju with river Mahakali. The project would comprise of a rock-fill dam with central clay core of 311 m height from the deepest foundation level. Two underground power houses at Pancheshwar dam, one on each bank of Mahakali River, each with a capacity of (6×400 MW) with the total installed capacity of nearly 4800 MW are proposed to be constructed. The power plant at main dam will be operated as the peaking station to meet energy demand in India and Nepal.

    A re-regulating dam at Rupaligad is proposed around 27 km downstream of the main dam to even out peaking flows released from Pancheshwar power houses for meeting downstream irrigation water requirement. Here, two underground powerhouses on both sides of river with total installed capacity of 240 MW (2 x 60 MW on either bank) are envisaged.

    The main dam (when impounded with water up to FRL) will form a reservoir of around 11,600 hectare area with a gross storage volume of about 11,355 Mm3. The submergence area on Indian side is 7,600 hectare, covering districts namely Pithoragarh, Almora and Champawat in the State of Uttarakhand whereas remaining 4000 hectares of submergence will be in Nepal.

    The project aims at producing hydro power and enhance the food grains production in both the countries by providing additional irrigation resulting from the augmentation of dry season flows. Year round irrigation will be possible in agricultural land in Kanchanpur district in Nepal due to enhancement in flows during non-monsoon months. The project will generate 10055 GWh of energy annually at Pancheshwar and Rupaligad dam power houses during 90% dependable years. Power generated will be shared equally between both the nations as per Treaty. Irrigation benefits in form of annual irrigation will be about 0.43 Mha, out of this, annual irrigation in Nepal would be 0.17 Mha and remaining 0.26 Mha in India. In addition, due to moderation of flood peak at reservoir(s), incidental flood control benefits for both the countries are also envisaged from the project.

    Pancheshwar Multipurpose Project is one of the top priority projects to be implemented in phased manner to reap the benefits of the project as early as possible. The work of preparation of Detailed Project Report (DPR) was entrusted to Water and Power Consultancy Services Limited (WAPCOS) by PDA and WAPCOS have in turn submitted the draft final DPR of the project to PDA in November, 2016. At present the finalization of Detailed Project Report (DPR) of the project is underway. A Team of Experts/Officials has been formed by both the countries for discussing and resolving all issues towards finalization of the DPR.

    After finalization of DPR, the Pancheshwar Development Authority shall undertake the execution, operation and maintenance of the project, including the work of re-regulating dam at Rupaligad site in an integrated manner.

    2.0 Sapta-Kosi High Dam Project and SUN Kosi storage cum diversion scheme.

    After exchange of letter of Understanding between the two Governments in June’ 2004, a Joint Project Office (JPO) was set up in August’ 2004 to undertake detailed field investigations for preparation of DPR of SaptaKosi High Dam Project at Barakshetra in Nepal. DPR is under progress.

    3.0 Kamla and Bagmati Multipurpose Projects

    The JPO-SKSKI has also been entrusted to undertake the feasibility study of Kamla Dam and preliminary study of Bagmati Dam Projects. These studies are in progress.

    PANCHESHWAR DEVELOPMENT AUTHORITY (PDA)

    Terms of Reference (TOR) of PDA

    1. The Government of India (GOI) and The Government of Nepal (GON) (hereinafter referred to as “the Parties”), have agreed at the 3rd meeting of theJoint Committee on Water Resources to set up the Pancheshwar Development Authority (hereinafter referred to as “the Authority”) pursuant toArticle 10 of the Mahakali Treaty. The Authority shall act as an independentautonomous body. It shall have two Co-Chairpersons, one from each Partyand twelve Members (six Members from each side) as per Annexure – A; which will be working as a Governing Body of the Authority. Among others, the Ambassadors of Nepal to India and India to Nepal shall be permanentinvitees at the meeting of the Governing Body.
    2. The Authority shall take immediate measures to finalize the Detailed Project Report of Pancheshwar Multipurpose Project (hereinafter referred to as “theProject”). Thereafter, the Authority shall undertake the execution, operationand maintenance of the Project, including the re-regulating dam at Rupaligad site in an integrated manner.
    3. All powers of the Authority shall be vested in the Governing Body. TheGoverning Body may delegate all or any of its powers to the ExecutiveCommittee. The Executive Committee shall comprise of the Chief ExecutiveOfficer (CEO), Additional Chief Executive Officer (ACEO), Executive Director(Legal), Executive Director (Technical), Executive Director (Administration),Executive Director (Environment), Executive Director (Resettlement andRehabilitation) and Executive Director (Finance) selected by the Authorityhaving equal representations from each Party.
    4. The Chief Executive Officer shall be in charge of the Project and shall actunder direction, supervision and guidance of the Authority.
    5. The CEO will be appointed by the Authority, either from India or Nepal, oncompetitive basis having requisite qualification, relevant experience andproven track record. Once appointed, he will function as the Member-Secretary of the Authority. The ACEO will be selected by the Authority, fromthe other country, on competitive basis and after appointment will function asthe Member-Joint Secretary of the Authority.
    6. The Authority shall have it’s headquarter at Mahendranagar, Nepal.The siteoffices as required shall be established in India and Nepal. Till such time theheadquarter is set up at Mahendranagar, the Authority shall function fromKathmandu, Nepal. The other officers and staff required for the execution ofthe Project will be decided by the Authority from the nationals of both thecountries.
    7. Authority shall frame its own rules of business. The ExecutiveCommitteeshall assist the Governing Body in order to frame the required rules toregularize the administrative, technical, financial and organizational matters ofthe Project.
    8. The Authority shall have an organizational set up for the implementation of theProject. To start the activities, the key personnel identified shall be selectedand appointed by the respective Party. The supervisory and supporting staffto the key personnel would be either hired on contract or be outsourced.
    9. The facilities created or installed in connection with the execution andoperation of the Project shall be under the joint ownership. Suchfacilities shallinclude power plants of equal capacity on each side of the river. The powerplants on either side shall be operated in an integrated manner and energy sogenerated shall be shared equally by both the Parties.
    10. The joint ownership of the facilities shall not confer to any Party rightofproperty nor jurisdiction over any part of the territory of the other Party.Neither does it imply alteration or change in the respective sovereignty overthe Mahakali River.
    11. An amount to be mutually decided by the Parties shall be providedequally asequity share to start the functioning of the Authority. Further fundrequirements shall be met by the authority by drawing loans from financialinstitutions and/or by calling upon the Parties to contribute.
    12. Both Parties, jointly or severally and in a manner they shall agree to, hall, atthe request of the Authority guarantee any borrowing or contractual obligationsthe Authority may undertake.
    13. The Authority shall be entitled to accept grants and to borrow money requiredfor the completion of the Project. All amounts received by the Authority byway of equity, loan, grant, etc., from any source shall be credited to a fund called “Pancheshwar Development Fund”. The Authority shall open a bank account for the Pancheshwar Development Fund, which shall be jointlyoperated under the signatures of Chief Executive Officer, Additional ChiefExecutive Officer and Executive Director (Finance) of which not more than twowould be of the same country.
    14. The annual requirement of funds shall be worked out by the ExecutiveCommittee and approved by the Governing Body in accordance with theschedule of construction and its progress.
    15. Major procurement of works, goods and consulting services for the Projectshall be made through competitive bidding. The Authority is entitled to enterinto agreements which are necessary for the pursuance of the Project.
    16. The Parties shall make available the required land for the Project construction,operation and maintenance. An integrated comprehensive plan forresettlement and rehabilitation of persons displaced by the Project shall bedevised by the Authority keeping in view the legal requirement of both Parties.
    17. No taxes, levies or contributions of any kind shall apply to materials andequipment acquired by the Authority in any of the two countries or imported bythe Authority from third country for use in its works or installations. Norestrictions of any kind shall apply to the movement or delivery of the materialsand equipment required for the Project. Authority shall apply for and obtain theexemptions/ refunds on custom duties/ taxes/ levies from the concernedGovernment agency on each of the consignments of materials and/ orequipment’s acquired or imported by the Authority.
    18. The personnel of the Authority and the executing agency shall, at all times,respect the laws of the land. However, no suit, prosecution or legalproceedings shall be instituted against any person in the employment of theauthority or executing agency for anything done in good faith in discharge ofofficial duties for the project.
    19. The provisions set forth herein shall be the subject of approval of therespective Governments as the case may be. The matters not covered by thisTOR shall be settled by mutual agreement of the two Governments.

    PANCHESHWAR DEVELOPMENT AUTHOIRITY(PDA)