India Approved A Deal To Buy 10,000 MW Of Electricity From Nepal

India Approved A Deal To Buy 10,000 MW Of Electricity From Nepal

Sept. 6, 2023, 7:54 a.m.

An agreement to purchase 10,000 MW of power from Nepal has been approved by India. Just two weeks prior to Prime Minister Pushpa Kamal Dahal Prachanda's visit to the UN and China, this significant development took place. India would be able to purchase electricity from Nepal on a short-, middle-, and long-term basis thanks to the long-term agreement.

Dr. Shankar P. Sharma, the ambassador of Nepal to India, declared that a new road map for Nepal's power development has been made possible by India's cabinet decision to buy 10,000 MW of electricity from Nepal over the next ten years.

This could make a substantial contribution to Nepal's economic restructuring and growth. According to Shankar P. Sharma, the ambassador of Nepal to India, a new road map for Nepal's power development has been made possible by India's cabinet decision to buy 10,000 MW of electricity from Nepal over the next ten years. This could make a substantial contribution to Nepal's economic restructuring and growth.

Madhu Prasad Vetuwal, Joint Secretary and Spokesperson of the Ministry of Energy, Water Resources, and Irrigation, revealed to the media that the Government of India's Council of Ministers has resolved to import 10,000 megawatts of power from Nepal over the next decade. The decision, according to Vetuwal, has been taken, but the formal announcement is still pending.

This ruling has paved the path for Nepal's electricity to be easily exported to the Indian market. Nepal has requested that electricity be exported to the Indian market in the short, medium, and long term.

The agreement, according to Prime Minister Pushpa Kamal Dahal Prachanda, is historic.

The Nepal Electricity Authority currently exports 452 megawatts of electricity to the Indian Energy Exchange Market on a daily basis. According to a government official, the authority has requested further electricity exports, but they have not yet been approved.

Nepal and India concluded an electrical trade agreement in 2014. Sutlej Vidyut Nigam, an Indian business, is developing the Arun 3 hydropower project with a capacity of 900 megawatts. Similarly, the Indian firm Gandhi Mallikarjuna Rao (GMR) announced intentions to develop the Upper Karnali hydropower project with a capacity of 900 megawatts, although building has yet to begin.

Similarly, the Indian corporation has completed the essential stages for the construction of projects such as Lower Arun, Paschim Seti, and SR-Six. Furthermore, corporations in Nepal and India have agreed to form a joint venture and build various projects.

Furthermore, Nepal is preparing to export 40 megawatts of electricity to Bangladesh in the near future, so establishing a climate in which Nepal's electricity may easily access the regional market. The business sector has urged the government to allow electricity trading, which is a feature in the proposed new electricity bill.

Shakti Bahadur Basnet, Minister of Energy, Water Resources, and Irrigation, has indicated that the private sector will soon be allowed to trade electricity. The Council of Ministers authorized the Ministry of Energy to introduce the Electricity Bill to the Federal Parliament on August 12th. The proposed bill would allow the private sector to engage in power trading.

Furthermore, India has approved the purchase of 110 MW of electricity from two hydroelectric projects under the Medium Term Power Trade Agreement (MTP). It is the first time that India has agreed to purchase power from Nepal for a five-year period under the medium-term agreement.

Suresh Bahadur Bhattarai, a spokesperson for the Nepal energy Authority, stated that India has approved the transfer of 110 MW of energy over the 400 KV Dhalkebar-Muzaffarpur international transmission line under a mid-term agreement. This approval, according to Bhattarai, will be valid for five years.

Prabal Adhikari, the Authority's Head of the Electricity Trade Department, announced that India has agreed to buy 86 MW of Solu Dudhkosi electricity, 83.42 MW of Dordi Khola electricity, and 27 MW from private investments in the medium term. According to Adhikari, they have suggested purchasing 200 megawatts of hydropower projects under the medium-term electricity deal with India.

He agreed that the approval of 110 MW is a solid start.

According to the Mid-Term Power Purchase Agreement, India will buy electricity from these two projects at a rate of INR 5.25 per unit.

Nepal and India signed a PTEA in May to sell 200 megawatts of electricity. Kulman Ghising, Managing Director of the Electricity Authority, and AK Bishwa, CEO of NVVN, recently inked an electricity trading deal.

Nepal proposed a medium-term electricity trade of 40.74 MW from Mistry Khola, 34.92 MW from Upper Balefi 'A', 28.17 MW from Likhukhola-1, and 12.75 MW from Upper Chaku, together with Solu Dudhkosi and Dordi Khola. India, on the other hand, only accepted the purchase of the Solu Dudhkosi and Dordi Khola projects for medium-term electricity trading.

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