“Nepal is sitting on a huge potential of clean energy — hydropower — while India is trying to replace existing thermal power for more cleaner options such as hydro, so if Nepal can supply hydroelectricity to India, it will be good for both countries,” said Indian Ambassador to Nepal Ranjit Rae, during an interaction held by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), here, today.
“Steady flow of energy is indispensable for India to achieve the aspired level of growth rate and hydro export can be Nepal’s solution to the widening trade deficit with India,” added Rae.
Following the Bilateral Investment Promotion and Protection Agreement (BIPPA) between Nepal and India and other taxation, trade and transit treaties, we have ample legal base for business cooperation, he pointed out, adding that the business communities of both the countries need to take advantage from that.
“Moreover, India is supporting Nepal in building physical infrastructure to facilitate trade, and there is also a political will for the cooperation,” he said. “Regarding any issue, the business communities need to work closely and engage in problem solving as well,” added Rae.
FNCCI president Suraj Vaidya pointed out the importance of Indian direct investment for the Nepali economy.
“There are problems in the Nepali economy but things have been getting better so both the countries can benefit by doing business together,” he pointed out.
Source : The Himalayan Times