Posted by: Neural September 16, 2004
Himalayan Hydropower
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.Proud Nepali, u wrote my words. That's what i meant. See, Marsyangi hydro project (70 MW), at present, is given a pressure to halt the work. It has affected not only the continuity of the project construction but also to many employees. Furthermore, I doubt if any foreign fund wud be there or not in future if such interruption occurs at work (I think Germany is helping for Marsyangdi). 70 MW is not a small project. We have more candidate hydro projects like West Seti, Arun-III. Why we have to GO FOR MICRO PROJECTS.. no meaning at ALL !!!!!! With the surplus energy, we can earn Hydro Rent. The power system of Nepal is tiny. Hence, real rent does not exist if the system is small and resources are more. In other words, real rent is not coming with domestic use. Also, the royalty on hydro in Nepal is not scientific. Nepal cannot consume all the resources available in the country. While there is power scarcity in India and Indian market is too big while compared to that of Nepal, Nepal hydropower resources can be utilized in India. And with the power export to India, an economic rent of hydropower project of Nepal can be obtained. Same thing happening in Canada, Sweden, Norway. That would certainly help in the exponential rise of our economy. However, the current pricing and policies on hydro resources in Nepal are not designed in accordance with such objectives. Even though Nepal government were to collect the economic hydro rent by modifying the pricing and policies, it would require some estimates of potential rent.
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