The government backflips

"India would need power by the time Arun III dam stal1$; producing electricity," said Nepal's Prime Minister Man Mohan Adhikary in response to a question by Down To Earth during his visit to New Delhi in April. Although the viability of the World Bank-sponsored project hinges on India's purchase of power from Arun, the 2 countries are yet to sign a bilateral agreement. "By then (after its completion) our domestic needs will also increase," Adhikary added.

The Communist Party had lambasted the previous government for dealing in kickbacks and ignoring the cost factor of the project. Even after winning the election. Nepal's deputy prime minister and party supremo. Madhav Kumar Nepal, asserted that the Arun III dam project was too exhorbitant -which is why the turnaround now is inexplicable.