Nepal, India seek breakthrough in stalled Pancheshwar project
Summary
Nepal and India will discuss the stalled Pancheshwar Multipurpose Project and other Mahakali Treaty issues at a bilateral water resources meeting in early September. The two sides remain divided over water sharing, cost allocation and benefit assessment, keeping the project unresolved for decades.
Key Points
- Nepal and India will hold water resources meetings in early September, the first in four years, to discuss the Pancheshwar Multipurpose Project and related Mahakali Treaty issues.
- The main sticking points are water sharing, cost-sharing, benefit distribution, and the finalisation of the Detailed Project Report.
- Nepal is proposing a 30:70 cost-sharing ratio, while India says it will bear only 65 percent of the project cost.
- The project has remained stalled for decades despite earlier agreements under the 1996 Mahakali Treaty.
