Nepal and India today signed much-awaited Power Trade Agreement in New Delhi.
Energy secretary Rajendra Kishore Kshatri and his Indian counterpart Pradeep Kumar Sinha signed the much awaited and debated trade deal but without incorporating provisions on power generation.
The agreement on Electric Power Trade and Cross-Border Transmission Interconnection and Grid Connectivity will now have to be endorsed by the cabinet of both the countries.
The eight-point agreement aims at enhancing friendly relations and mutual trust between Nepal and India through increased cooperation in the field of transmission interconnection, grid connectivity and power trade, according to a press statement issued by Embassy of Nepal in New Delhi today. “It facilitates government, public and private enterprises in planning and construction of interconnection facilities and power trade,” it further read, adding that the country will be able to purchase more electricity from India when production falls and sell power to the southern neighbour whenever there is a surplus, once the agreement comes into force. ” It has also paved the way for both the countries to sell and purchase electricity through synchronized connection,” it added.
The 25-year agreement on power trading, cross-border transmission line and grid connectivity is expected to provide access to domestic and international hydro project developers to the vast market in India. It will also help Nepal attract foreign investment in the hydro sector in the country.
It has also envisaged the regional and sub-regional power trade as the Article VI of the agreement states, “The agreement shall not affect in any way the obligations of the parties under existing bilateral agreements between the parties as well as their existing agreements with other countries.”
Meanwhile, Nepal and India today also formed a secretary-level joint steering committee and a joint secretary-level joint working group to implement the agreement.
The committee and the group will promote and facilitate agreement, including planning and identification of cross-border interconnections, selection of transmission technologies, preparation of Detailed Project Reports, and modes of investment for timely implementation of projects,” the statement added.
KATHMANDU: Nepal and India today agreed to hold the first meeting of Pancheshwar Development Authority in Kathmandu within a month, according to a statement issued by Embassy of Nepal in New Delhi. The meeting would hold discussions on drafting a detailed project report of 6,480-MW Pancheshwar Development Project.