The assessment of these compensations and the nature of the payment are defined below by mutual agreement between the government and the Union. The year 2008 saw another devastating flood in northern Bihar. Flooding in Bihar is almost an annual phenomenon. Although the capacity of the river is this time well below the danger limit, the situation was indeed aggravated by a rupture in the east dam. An estimated 30 people have been displaced and their livelihoods devastated in sixteen districts in northeastern Bihar. At the same time, about 50,000 people are affected in Sunsari district, Nepal. Political leaders on both sides of the India-Nepal border have blamed each other for failing to prevent such a massive disaster. Some, such as The Prime Minister of Nepal, Pushpa Kamal Dahal é, have even blamed the Kosi agreement signed in 1954 between India and Nepal. Dahal called the agreement “suicidal” and “non-reciprocal” which is responsible for the floods in Nepal each year. But these criticisms are based on a poor knowledge and understanding of the developments of recent decades. Some aspects of the 1954 agreement caused friction between India and Nepal, the most important of which was the issue of compensation. India was responsible for compensation for the country acquired in Nepal and for all the damage caused by the construction of the ban.
She was also responsible for the design, construction and operation of the project. Nepal said the agreement was flawed in terms of the benefits enjoyed by both countries. For irrigation, for example, only 29,000 hectares benefited Nepal, while the containment zone had the capacity to irrigate 1.5 million hectares. Some groups in Nepal have also expressed their displeasure with the disappearance of the territory and the resulting displacement of people who have not been compensated. Control and management of the blockade of India was also seen as a violation of Nepal`s territorial sovereignty. This agreement was reached on 25 April 1954 between the Government of the Kingdom of Nepal (hereafter referred to as the “government”) and the Indian government (hereafter referred to as the “Union”). 6. TANTIEMES. – (i) The government receives royalties on energy produced and used in the Indian Union at rates that must be paid by mutual agreement. Assuming there are no royalties for electricity sold in Nepal. India and Nepal signed the Kosi Agreement in 1954 to regulate river flows and manage floods. To this end, a dam should be set up along the India-Nepal border and constraints should be established on both sides of the river.
At the same time, the project should also be used for electricity generation and irrigation. Designed to retain 9.3 Lakh Cusecs of water, the total irrigation capacity of the containment basin has been estimated at 1.5 million hectares, of which about 29,000 hectares are in Nepal.s territory. The project was expected to generate 20,000 KW from the eastern channel, of which about 50% are expected to be sold in Nepal. The total estimated cost of the project amounted to 450 million euros, which was to be fully supported by India. Nepal in 2008 is different. This “new” Nepal has undergone changes in domestic policy and a representative agreement on power-sharing.