The India government has approved the draft of the agreement reached between Nepal and the southern neighbor regarding procurement of 10,000 megawatts of electricity in the next 10 years.
The India government approved it in accordance with the Power Trade Agreement, 2014 that stipulates a provision of long-term electricity exports.
A preliminary power trade agreement to procure 10,000 megawatts electricity of electricity had been reached between Nepal and India during Prime Minister Pushpa Kamal Dahal’s recent visit to India.
The power trade agreement has been approved by the Council of Ministers of India, informed Madhu Bhetwal, the secretary at the Energy, Water Resources and Irrigation.
“Even though we have not been informed formally by the India government,” said Bhetwal, “It has been included in the draft of the mid-term and long-term power trade agreement.”
The Nepal government had floated a proposal of a 25-year power trade agreement during Prime Minister Dahal’s India visit that took place on May 31-June 3.
Following a negotiation, the two countries agreed to procure 10,000 megawatts of electricity in the next 10 years.
Indian Prime Minister Narendra Modi, during a joint press meet, himself announced that the India government would procure 10,000 megawatts of electricity in the next 10 years.
According to the Ministry of Energy, the agreement will be signed between energy secretaries of Nepal and India once India informs about it officially.
“The power trade agreement had been reached in 2014 itself. A new deal is being signed to facilitate this agreement,” said Bhetwal, who is also the spokesperson, “There is no power production to export 10,000 megawatts at a time. Even if it is produced, there are no transmission lines.”
This power trade agreement will create environment conducive for the foreign investment as it ensures international electricity market, Bhetwal said.
Nepal has offered Arun III, Lower Arun, West Seti, SR-6, Upper Karnali hydropower projects to India.
With the decision, door to export the electricity produced in Indian market in easy and smooth manner has been opened. Nepal had been urging for power export in Indian market in short-term, mid-term and long-term.
The Nepal Electricity Authority (NEA) has been exporting 452 megawatt electricity in Indian Energy market in a daily basis.
The private sector has been demanding that the government grant permission of power trade. The Cabinet meeting held on August 29 had given permission to Energy Ministry to table the electricity bill in the Federal Parliament.
Similarly, Nepal has been making preparation to export 40 megawatt electricity in Bangladesh soon.
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