Days before the G-20 summit in New Delhi, which Chinese President Xi Jinping is giving a miss, China’s Ambassador to Nepal Chen Song took a dig at India. “India’s policies towards Nepal and other neighbours are not so friendly,” Mr. Song said, adding that while India had opened its economy, it “doesn’t bring growth”. He pitched the Belt and Road Initiative (BRI) as a “gift” to developing countries to achieve rapid economic growth.
“Unfortunately, you have a neighbour like India, but fortunately, you have a neighbour like India. Because India is a huge market, huge potential you can tap into. But at the same time, India’s policy towards Nepal and other neighbours is not so friendly and not so beneficial to Nepal. We call that policy constraints. When Nepal Government formulates economic policies, you have to take decisions under those circumstances,” Mr. Chen said, speaking at an event in Kathmandu.
In an attempt to dissuade Nepal from its economic dependence on India, the envoy said Nepal currently has very strong educational and medical systems, but a very weak agricultural sector. “It has become even weaker. I have been told Nepal used to export agricultural products. Now, you are importing from India,” Mr. Chen said.
“Last fiscal year, you exported 10 billion rupees of electricity to India. How much did you import from India? My Nepalese friends, you imported 19 billion Nepalese rupees of electricity from India. You had a deficit in electricity trade, one of the products you are proud of, and you think that will bring you economic independence,” Mr. Chen said, quoting data on this.
Mr. Chen further said in the first month of this fiscal, Nepal had imported nine billion Nepali Rupees worth of cereals from India, and suggested that the Nepal Government “prioritise” the agricultural sector. He also said the industrial sector in Nepal was lagging and the country was importing all industrial products from India.
On September 5, the Union Cabinet granted approval to purchase an additional 10,000 MW electricity from Nepal to meet its green energy target. “India’s Cabinet approval to purchase 10,000 MW of electricity from Nepal in the next 10 years has paved the way to develop a new road map for electricity development in Nepal. This could play a significant role in the economic development and restructuring of Nepal,” Shankar P. Sharma, Nepal’s Envoy in India, said on social media.
The Chinese economy is booming because we have a very solid foundation, Mr. Chen said, adding that, at the same time, India had also opened its doors, but “we did not see any economic booming in India”. “Only after the recent years, we see that India’s economy is starting to soar,” Mr. Chen said.
Talking of the future of China, he said it was entering a new era of economic growth. “We are trying to come out of the middle income trap. Even though the U.S. wants to disengage with China, we want to embrace the world more, including Nepal,” Mr. Chen said.
In this regard on the BRI, he said: “It’s a gift for developing countries. Countries embracing BRI grow more fast, more effectively and enjoy faster economic growth. That is what is happening in Africa, Southeast Asia, and to some extent in South Asia.”
On the trade in electricity between India and Nepal, an official source with knowledge of the matter said that with Nepal’s national peak demand of 1,700 MW, surplus energy of around 900 MW could be exported. The reason for the power deficit equation was the design of the hydroelectric projects, the source said, adding, “Most of these projects are ‘run-of-the-river’ type, that is, they don’t have reservoir and thus rely on the seasonal flow of rivers. So, while in summers/ wet seasons, Nepal has been able to export electricity, but during winters, Nepal find it difficult to meet its domestic requirements.”
According to data published in Nepali media recently, in last decade, installed hydropower production in Nepal has increased from 1,050 MW in 2012 to 2,700 MW in 2023, and this is expected to increase to 9,000 MW in the next 10 years as 235 hydropower plants are still under construction.
Nepal has been negotiating with China since 2018 to develop the Kerung Rasuwagadhi-Galchhi-Ratmate cross border 400KV transmission line, located west of Kathmandu, but it hasn’t made any progress, one official noted.
“I will have more field trips to learn about the reality of Nepal and find more potential cooperation between China and Nepal. Best of all, I think Nepalese people also have the right to enjoy a more rich life, a more modern life, a more prosperous life,” Mr. Chen said.