What West Seti Power Project can mean for India-Nepal ties?

India will be taking over an ambitious hydropower project in Nepal — West Seti — nearly four years after China withdrew from it, ending a six-year engagement between 2012 and 2018.

What is West Seti Hydel Project?

The West Seti Dam is a proposed 750-megawatt (MW) hydroelectric dam on the Seti River in the Far-Western Development Region of Nepal.

Particularly, it is a storage scheme designed to generate and export large quantities of electrical energy to India.

The project is envisaged to provide Nepal 31.9% electricity free.

Besides, locals affected by the project are being given a share of Nepali Rs 10 million plus 30 units of electricity per month free.

Why in news now?

The project was earlier accorded to a Chinese company.

But Nepal feared that India won’t buy power from China-executed projects.

Significance: India -Nepal Power Relations

Nepal is rich in power sources with around 6,000 rivers and an estimated potential for 83,000 MW.

India has formally approached Nepal on many occasions, seeking preferential rights over Nepali waters should it match offers coming from elsewhere.

India is viewed as a feasible power market for Nepal.

India has undertaken to harness or expressed intent to harness major rivers in the north.

Issues in project execution

There has been some uncertainty in Nepal over India’s inability to deliver projects on time.

An ambitious Mahakali treaty was signed back in 1996, to produce 6,480 MW, but India has still not been able to come out with the Detailed project Report.

The Upper Karnali project, for which the multinational GMR signed the contract, has made no headway for years.

Major reasons for stalling of these projects was a lack of consensus over power purchase agreement with India.

Also, seismic sensitivity of the Himalayan Region is the prime consideration.

What has helped build faith recently?

India under PM Modi has been successful in executing the 900-MW Arun Three Project in eastern Nepal’s Sankhuwa Sabha.

After a standoff between Nepal and India led to the economic blockade of 2015, equations changed after Deuba took over last July, replacing Oli.

Benefits for Nepal

Nepal has a massive power shortfall as it generates only around 900 MW against an installed capacity of nearly 2,000 MW.

Although it is currently selling 364 MW power to India, it has over the years importing from India.

Hurdles from Nepal’s internal crisis

Nepal’s Constitution has a provision under which any treaty or agreement with another country on natural resources will require Parliament’s ratification by at least a two-thirds majority.

That will also mean homework will be required before any hydro project is signed and given for execution.

Way forward

Until India agrees to value Nepal’s water and the existing focus on power is not reviewed, mutual distrust may continue.

India must start executing its projects timely.

And its success is expected to restore India’s image in Nepal and give it weightage in future considerations for hydropower projects, when competition is bound to be tough.

West Seti, therefore, has the potential to be a defining model for Nepal India’s power relationsu in future.

Outcomes of the WTO Ministerial Conference

Recently, member countries of the World Trade Organization (WTO) wrapped up the Ministerial Conference’s twelfth outing (MC12).

Key outcomes: “Geneva Package”

The conference has secured key agreements on

Relaxing patent regulations to achieve global vaccine equity

Ensuring food security

According subsidies to the fisheries sector

Continuing moratoriums relevant to e-commerce

Together they constitute what WTO Director-General is referred to as the “Geneva Package.”

India saw some successes at the MC12 with respect to the above mentioned sectors.

What is the WTO’s Ministerial Conference?

The MC is at the very top of WTO’s organisational chart.

It meets once every two years and can take decisions on all matters under any multilateral trade agreement.

Unlike other organisations, such as the International Monetary Fund or World Bank, WTO does not delegate power to a board of directors or an organisational chief.

All decisions at the WTO are made collectively and through consensus among member countries at varied councils and committees.

This year’s conference took place in Geneva, Switzerland.

Major debates at the MC12

(1) Agriculture

India is a significant contributor to the World Food Programme (WFP).

India had earlier stated that it had never imposed export restrictions for procurement under the programme.

It put forth that a blanket exemption could constrain its work in ensuring food security back home.

In such a situation, it would have to keep its WFP commitments irrespective of its domestic needs.

Negotiators could not reach agreements on issues such as permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access.

(2) Fisheries

India successfully managed to carve out an agreement on ELIMINATING subsidies to those engaged in illegal, unreported and unregulated fishing.

The only exception for continuing subsidies for overfished stock is when they are deemed essential to rebuild them to a biologically sustainable level.

Overfishing refers to exploiting fishes at a pace faster than they could replenish themselves — currently standing at 34% as per the UN Food and Agriculture Organization (FAO).

Declining fish stocks threaten to worsen poverty and endanger communities that rely on aquatic creatures for their livelihood and food security.

Further, the agreements hold that there would be no limitation on subsidies by developing or least-developed countries for fishing within their exclusive economic zones (EEZ).

(3) Patent relaxations

Member countries agreed on authorising the use of a patent for producing COVID-19 vaccines by a member country, without the consent of the rights holder.

Further, it asks member countries to waive requirements, including export restrictions, set forth by WTO regulations to supply domestic markets and member countries with any number of vaccines.

The agreement, however, comes too little, too late for economically poorer countries.

I2U2 Initiative

The US administration has named the new grouping as “I2U2” — “I” for India and Israel and “U” for the US and UAE. This was earlier referred as West Asian Quad.

What is the news?

US President Joe Biden will host a virtual summit with PM Modi, Israel PM Naftali Bennett and UAE President Mohammed bin Zayed Al Nahyan during his visit to West Asia from July 13 to 16.

I2U2 Initiative

Following the Abraham Accords between Israel and the UAE, I2U2 was founded in October 2021 to address marine security, infrastructure, and transportation challenges in the region.

It was known as the ‘International Forum for Economic Cooperation’at the time.

At that time, UAE had referred to the new grouping as the ‘West Asian Quad’.

What makes this deal outstanding?

UAE forming sharing desk with Israel is no easy deal. Arab sentiments against Israel and their proposition for Anti-Semitism are well known.

Significance of the initiative

I2U2 seeks to empower the partners and encourages them to collaborate more closely, resulting in a more stable region.

India is seen as a large consumer market as well as a large producer of high-tech and highly sought-after items in the United States.

This has led India to enhance its relationship with Israel without jeopardising its ties with the UAE and other Arab states.

Private Captive Networks

The Cellular Operators’ Association of India (COAI) wrote a letter urging the government against allotting 5G spectrum to private captive networks, claiming that it will diminish their revenue to the point where offering 5G will pointless.

What is a Private Captive 5G Network?

A private captive 5G network is basically a network set up by a private entity for the use of just one organisation.

It is similar to a captive coal mine in that the 5G service offered by this captive network will only be utilised by the enterprise concerned, and no one else.

Why are telecom providers against it?

The COAI’s argument is that enterprises are the biggest users of 5G networks.

If private entities are allowed to offer captive networks to enterprises, the TSPs (telecom service providers) retail revenues will fall.

COAI implied that there is no great demand for 5G right now as “the needs of voice and data of the entire nation is being adequately met by the TSPs through their 4G networks today”.