Nepal urges Enron on power unit

MUMBAI, FEB 7: A mega-electricity project proposed by Enron International, the US-based giant energy multinational, across the northern b...

MUMBAI, FEB 7: A mega-electricity project proposed by Enron International, the US-based giant energy multinational, across the northern borders in Nepal could be a vital new power source for northern India.

Proposed nine years ago as the world8217;s largest hydroelectric dam that would export power to China and India, the project appears all set to be revived, with Enron applying for a license to study the possibility of building a hydroelectric dam on Nepal8217;s Karnali river. This was reported by a wire agency, quoting a senior Nepali official on Sunday.

In 1996, Enron Renewable Energy Corp, another subsidiary of Enron Corp, submitted a plan to build the Karnali dam and export electricity to neighbouring India and China. It withdrew the proposal in April 1998 because of uncertainty over the export market.

quot;Enron International has applied for a survey licence to conduct the detailed feasibility of the project,quot; Kishor Babu Aryal, Deputy Director General of the Electricity Development Centre EDC said. quot;Wehave8230;invited them to come for completing necessary formalities and procedures,quot; he said. Enron International is a subsidiary of Enron Corp.

In October 1998, Nepali Prime Minister Girija Prasad Koirala said he had asked Enron Corp to reconsider their decision.

Aryal did not give details of the renewed proposal by the Houston-based firm, saying it would be discussed during a meeting with Enron. Nine years ago Nepal conducted a pre-feasibility survey with World Bank assistance. A dam on the Karnali would be among the world8217;s biggest and could generate up to 10,800 megawatts.

Experts say some 44,000 megawatts of power could be economically generated from Nepal8217;s Himalayan rivers.

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Nepal uses less than 0.5 per cent of the potential and only 15 per cent of the kingdom8217;s 22 million people, among the poorest in the world, have access to electricity.