3.5. Water Resources

♤ Cooperation in Water Resources primarily concerning the common rivers is one of the most important areas of our bilateral relations and has immense potential.

♤ It is estimated that around 250 small and large rivers flow from Nepal to India and constitute an important part of the Ganges river basins.

♤ These rivers have the potential to become major sources of irrigation and power for Nepal and India, but without planning, are a source of devastating floods in Nepal’s Terai region, and the Indian States of Bihar and Uttar Pradesh.

♤ A three–tier bilateral mechanism established in 2008, to discuss issues relating to cooperation in water resources and hydropower between the two countries, has been working well.

♤ In November 2014 Nepal and India sign a deal to build a $1bn hydropower plant on Nepal's Arun river to counter crippling energy shortages.

♤ The Commencement of Work on the Pancheshwar Multipurpose project on Mahakali river in 2017 is expected to provide impetus to water resource cooperation between India and Nepal.