The initial feasibility studies on the Karnali project failed to take into account the impact of this product on financial feasibility and its sociological impact on Nepal. Another issue of contention for Nepal was that during their negotiations, India denied or gave lip service to issues surrounding irrigation and flood control. Additionally, India demanded that they would only be prepared to pay for the cost of the energy and not for the cost of peaking power which meant most of the cost would be transferred to Nepal. Nepal demanded it wanted to link the cost of electricity to the cost of alternative thermal energy to enhance its profit.