With the Indo-U.S. civilian nuclear deal hanging in the balance, the government is framing a policy for importing power from neighbouring countries including Pakistan to overcome the peaking shortage, say highly placed sources. Work on the policy is being expedited. For, although India considers Nepal, Bhutan and Myanmar a natural market for hydroelectricity, competition could be round the corner. Both Nepal and Bhutan have started inviting foreign participation in the power sector. In addition, Indian diplomats feel, China may at some stage look at importing power from these countries by laying transmission lines across the Himalayas although the prospect now seems commercially unattractive. It is already active in hydropower development in Myanmar and some other countries are also discussing the prospects with Beijing. The overriding objective of the policy should be "securing energy resources in these countries for our future in a framework based on sound commercial principles and which is beneficial to both parties in the long run,' said the sources. All proposals in any such policy would be made applicable prospectively so as not to disturb the existing arrangements with Bhutan. According to the Foreign Office's calculations, Bhutan, Nepal and Myanmar have a hydropower potential of about 1.40 lakh MW, of which just about less than 3,000 MW is now being exploited. India does not think that these countries will utilise much of this potential for domestic use in the near future, what with their low level of economic development. Besides, being scantily populated, rehabilitation and resettlement problems may not be so acute in these countries. "Now that a number of private players are evincing interest in the development of hydro projects, especially in Nepal, it is necessary for us to have a clear-cut policy to protect the country's interest in general and that of customers in particular,' said the sources. The policy will also factor in Pakistan's proposal to supply power to India. As a first step, two rounds of discussions have been held to import 300 MW for 10 years for the severely power-challenged Punjab. If negotiations progress smoothly, this quantum could be doubled. Long-term pacts The policy for import from neighbours would cover long-term power purchase agreements, tariff, a mechanism for review of tariff, a nodal agency for import, penalty clauses and norms for power dispatch in compliance with the Indian grid. "We will also have to take into account the fact that a country which develops its power portfolio on the basis of import from another country would find itself in deep trouble if at a critical juncture a large component of power suddenly becomes unavailable,' the sources pointed out.