…we remain deeply concerned over India’s apparent unwillingness to collaborate fully in regional efforts which stand to bring much-needed, long-term benefit to poverty-stricken Nepal.
2003-03-04 04:50 C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000382 SIPDIS STATE FOR SA DAS DON CAMP, SA/INS, AND SA/RA STATE PLEASE PASS AID/ANE - D MCCLUSKEY, C LOWRY, G WEYNAND, J WILSON LONDON FOR POL/RIEDEL NSC FOR E MILLARD E.O. 12958: DECL: 03/03/2008 TAGS: EAID ECIN ENRG PREL SUBJECT: INDO-NEPAL CROSS-BORDER ENERGY TRADE STAGNATES REF: KATHMANDU 314 Classified By: DCM Robert K. Boggs, for reasons 1.5(b) and (d). ś1. (C) SUMMARY: Nepal's Minister for Water Resources Dipak Gyawali is sharply critical of India's policies on cross-border energy trade. He told us that he believes New Delhi focuses on the strategic aspects of water and energy to the exclusion of economics. Despite Nepal's current power surplus, Gyawali understands that Nepal will need to develop storage capacity in the future, in addition to slated run-of-the-river projects, in order to compensate for the high seasonal variability of water flows. He believes that joint venture models have the greatest potential for tapping Nepal's huge hydroelectric potential. In our view, India's resistance to joining South Asian regional initiatives is holding back the economic development of both countries and will impede national as well as donor-funded efforts to alleviate South Asia's poverty. Please see action request for Department and Embassy New Delhi in final paragraph. End Summary.