This Agreement was concluded on that twenty-fifth day, in April 1954, between the Government of the Kingdom of Nepal (hereinafter referred to as `the Government`) and the Government of India (hereinafter referred to as `the Union`). The assessment of that compensation and the nature of the payment shall be established by mutual agreement between the Government and the European Union. While it is desirable to create a forum to discuss issues of common interest and to expedite decisions for the early completion of the Kosi project, it is agreed between the Indian Union and the Government of Nepal to establish a coordinating committee. The Committee shall be composed of three representatives from each country designated by the respective Governments. It was also agreed that the Chairman of the Committee will be a Minister of the Government of Nepal and the Secretary to the Administrator of the Kosi Project. The Committee shall consider all matters of common interest related to the project, including the acquisition of land, rehabilitation of the displaced population, maintenance of law and order, soil conservation measures and other matters which may be referred from time to time to the Committee for consideration by the Government of Nepal or the Union. 7. CUSTOMS DUTIES. – the Government shall not collect any customs duty or tax on goods or materials necessary for the purposes of the project and related works or for the bona bona foi use of the Union during construction and subsequent maintenance. 6. ROYALTIES. – (i) The Government shall receive charges for electricity produced and used in the Indian Union at rates to be settled below by agreement. Provided that no royalties are paid for electricity sold in Nepal.
The last joint team meeting between Indo and Nepal, held in New Delhi for the Kosi study, rightly decided not to take a further decision on a detailed Kosi study without full clarification of the higher political level of each country, which should clearly be based on the opinions of relevant experts and national debates covering all aspects of this largest multi-purpose hydropower project. multiple in the world. Policymakers in India and Nepal may not have been properly informed of the 1997 Kosi Study Agreement, already signed between our two governments, to carry out a detailed feasibility study of the Kosi Navigation Canal, so the Prime Ministers of our two countries recently announced together that they would develop navigation themselves using the natural route of the Kosi River, although it is expected that, that the Kosi River in most of the year due to the high collection of water for irrigation. Some aspects of the 1954 agreement caused tensions between India and Nepal, the most important of which was the issue of compensation. India was responsible for the compensation of the country acquired in Nepal and for all damage caused by the construction of the dam. He was also responsible for the design, construction and operation of the project. Nepal claimed that the agreement was distorted with regard to the benefits of both countries. As for irrigation, for example, only 29,000 hectares benefited Nepal, while the dam had the capacity to irrigate 1.5 million hectares. Some groups in Nepal have also expressed dissatisfaction with the disappearance of the territory and the resulting expulsion of individuals, none of whom have been compensated. India`s control and management of the shootout was also seen as a violation of Nepal`s territorial sovereignty. The third phase of the Kosi project began in the late 1980s, when the Indian government proposed the idea of an alternative project to protect the Kosi dam itself. This resulted in a rupture of the eastern dam in 1987 and discontent in Nepal over not having benefited sufficiently from the electricity produced by the project.
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