Nepal Supreme Court Scrutinizes India Power Deal

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Kathmandu, Nepal - Nepal's Supreme Court has taken a significant step by issuing a show-cause notice to the government regarding the recently signed long-term power deal with India. The court's action raises questions about whether the agreement requires the endorsement of a majority of parliament members, potentially complicating the implementation of the deal.

Background of the Power Deal

In January, during External Affairs Minister S Jaishankar's visit to Nepal, the two countries signed the Power Trade Agreement (PTA) to facilitate the export of 10,000 MW of electricity from Nepal to India over the next ten years. The deal was seen as a major milestone in strengthening energy cooperation between the two nations.

Legal Challenge and Supreme Court's Notice

However, the legality of the agreement has come under scrutiny following a writ petition filed by former Secretary of the Government of Nepal, Surya Nath Upadhyay. Upadhyay, who is also a member of the Nepal-India Eminent Persons' Group, argued that the bilateral agreement should be endorsed by Parliament to ensure transparency and accountability.

In response to the petition, a single bench of Supreme Court Justice Nahakul Subedi issued a show-cause notice to the government. The notice seeks clarification on whether the agreement involves the distribution and utilization of natural resources, which would require the approval of a majority of parliament members.

Implications for the Agreement

The Supreme Court's notice has cast uncertainty over the future of the power deal. If the court rules that the agreement requires parliamentary endorsement, it could delay the implementation of the project and potentially lead to renegotiations between Nepal and India.

Next Steps and Hearings

The Supreme Court has called for hearings from both the government and the petitioner to further deliberate on the matter. Representatives from both sides will present their arguments before the court, which will then decide whether to issue interim orders or take further action.

The Supreme Court's intervention in the India-Nepal power deal highlights the importance of legal scrutiny and transparency in international agreements. The outcome of the court's proceedings will have significant implications for the future of energy cooperation between the two countries.