Context: 

Pancheshwar Multipurpose Project (PMP) between India and Nepal,  has been a topic of concern in official dialogue due to its stagnant progress over the years. 

Pancheshwar Dam/ Pancheshwar Multipurpose Project (PMP) 

• Pancheshwar Dam is a part of the Mahakali Treaty.
  • It was signed in 1996.  
• It is planned on the Mahakali River. 
• It involves the construction of equal-sized powerhouses of 3240MV on both sides of the river.

• In addition to generating power, the project will irrigate 130,000 hectares of land in Nepal and 240,000 hectares in India, along with providing flood protection and other related benefits.

Reasons For Stalled Pancheshwar Dam 

• Lack of Consensus on Detailed Project Report: Though the treaty was signed in 1996, there are disagreements between Nepal and China over specifics outlined in the Comprehensive Detailed Project Report (DPR).
• Contentious Issues: There is difficulty in finding mutually acceptable solutions over dam height, Submergence area and Downstream benefits.
• Inconsistent political support: The project has not consistently garnered robust political support from either India or Nepal.
• Delays in Decision-Making: Bureaucratic hurdles on both sides have significantly slowed down the decision-making process.

News Source: The Hindu