India Allows Nepal To Export 325 MW Of Electricity

India Allows Nepal To Export 325 MW Of Electricity

April 7, 2022, 8:16 a.m.

The Central Electricity Authority of India has given approval to the Nepal Electricity Authority (NEA) to sell an additional 325 MW of electricity in the Indian electricity market.

The decision came after the visit of Prime Minister Sher Bahadur Deuba to India. Nepal has been demanding to increase market quota in Indian market.

The NEA had earlier received permission to sell 39 MW of electricity last October. Now, Nepal will be able to enter the Indian energy exchange market to sell up to 364 MW of electricity at competitive rates.

NEA has received approval to export 140 MW from 144 MW Kaligandaki ‘A’, 68 MW from 70 MW Middle Marsyangdi, 67 MW from 69 MW Marsyangdi, 51 MW from 52.4 MW Likhu-IV.

Speaking at a press conference organised at the Ministry, Minister for Energy, Water Resources and Irrigation Pampha Bhusal said that the first step towards the implementation of the vision document on cooperation in the energy sector has been taken after receiving approval from the Indian side for additional power export.

She said that India’s decision to purchase additional electricity from Nepal was positive as there was concern over wastage of electricity generated in Nepal during the rainy season.

“We needed a bigger market, which has led to further market expansion,” she said.

She said that the surplus electricity after consumption in Nepal would be sold in India and the market for electricity in other countries would be expanded through Bangladesh, Bhutan, India and Nepal Participatory Sub-regional Forum (BBIN).

“This will reduce the trade deficit between the two countries and contribute positively to the economy,” said Minister Bhusal.

“The implementation of the vision document on cooperation in the region has also started, we would like to congratulate and thank all those involved in it,” she said.

Stating that the door of power generation has been opened with the assurance of the market, Minister Bhusal expressed confidence that the scope of electricity trade would also increase in the coming days.

Secretary at the Ministry, Devendra Karki informed that during the Prime Minister’s visit to India, a joint commitment was expressed between the two countries for cooperation in the energy sector.

He said that the production, transmission and trade of electricity have been given priority in the commitment.

The document stated that the two countries will jointly engage in large reservoir projects, use the transmission line for each other’s benefit, use the transmission line from India to Bangladesh and trade electricity to the benefit of both countries.

Even though the installed capacity is high, it is estimated that up to three per cent of electricity will be lost if it is transported from the project site to Muzaffarpur, India.

The agreement was reached during Prime Minister Sher Bahadur Deuba’s visit to India.

The Ministry of Energy, Water Resources and Irrigation has said that the Nepal-India Joint Vision Statement on Power Sector Cooperation has entered into the implementation phase as per the agreement reached with his Indian counterpart Narendra Modi during Prime Minister Deuba’s visit to India last week.

Speaking at a press conference organised at the Ministry, Minister for Energy, Water Resources and Irrigation Pampha Bhusal said that the first step towards the implementation of the vision document on cooperation in the energy sector has been taken after receiving approval from the Indian side for additional power export.

She said that India’s decision to purchase additional electricity from Nepal was positive as there was concern over wastage of electricity generated in Nepal during the rainy season.

“We needed a bigger market, which has led to further market expansion,” she said.

She said that the surplus electricity after consumption in Nepal would be sold in India and the market for electricity in other countries would be expanded through Bangladesh, Bhutan, India and Nepal Participatory Sub-regional Forum (BBIN).

“This will reduce the trade deficit between the two countries and contribute positively to the economy,” said Minister Bhusal.

“The implementation of the vision document on cooperation in the region has also started, we would like to congratulate and thank all those involved in it,” she said.

Stating that the door of power generation has been opened with the assurance of the market, Minister Bhusal expressed confidence that the scope of electricity trade would also increase in the coming days.

Secretary at the Ministry, Devendra Karki informed that during the Prime Minister’s visit to India, a joint commitment was expressed between the two countries for cooperation in the energy sector.

He said that the production, transmission and trade of electricity have been given priority in the commitment.

The document stated that the two countries will jointly engage in large reservoir projects, use the transmission line for each other’s benefit, use the transmission line from India to Bangladesh and trade electricity to the benefit of both countries.

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