India-Nepal to expedite creation of Pancheshwar development authority

New Delhi, Feb 16 (PTI) Taking a major step forward, India and Nepal have decided to expedite setting up of Pancheshwar Development Authority and look into the possiblility of duty free movement of equipment to the Himalayan nation for repair work of Gandak project. Holding the first ever meeting of the Joint Ministerial Commission on Water Resources here Wednesday, the two countries also agreed to expedite the completion of detailed project report of Sapta Kosi High Dam Multipurpose project and Sun Kosi Storage-cum-Diversion Scheme by next February. Briefing reporters after the meeting, India's Water Resources Minister Pawan Kumar Bansal said the government of the country's eastern state of Bihar bordering Nepal raised the issue of maintenance of Kosi embankments in a wildlife sanctuary located in Nepal and the two sides decided to look into the matter. A breach in the Kosi embankment had caused major floods in Bihar in 2008. The Joint Commission has recommended that the maintenance of a 15 km stretch of eastern Kosi embankment will be carried by India instead of Nepal. The Pancheshwar Development Authority will help undertake the 6,000-MW Pancheshwar multi-purpose project on the Mahakali river. While Nepal has already prepared the Terms of Reference for the proposed project, India is yet to finalise its draft. Bansal said a variety of issues were behind the delay but said the Indian government will expediate the plan. The cost of implementing Pancheshwar project, estimated at about Rupees 170.0 billion in 2002, has now escalated to over Rs 300.0 billion (about USD 6.1 billion). India and Nepal also discussed the difficulties being faced in carrying out various works of Kosi and Gandak river projects. The Commission directed the Joint Committee on Water Resources to look into the problems and come up with solutions. During the day-long meeting, Nepal raised concerns regarding payment of compensation for land and damage of crops due to floods and construction of the projects. While India was represented by Bansal, Nepal was represented by its Irrigation minister Mahendra Prasad Yadav and Power Minister Posta Bahadur Bogti. PTI