Kathmandu: Nepal and India have inked a long-term agreement on electricity trade on Thursday.
During the visit of Indian External Minister Affairs to Nepal, both the countries signed the agreement to export 10,000 megawatts of electricity from Nepal to India in the next ten years. The agreement was signed by energy secretaries of both the countries in the presence of Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet.
The bilateral understanding on electricity export was reached during Prime Minister Pushpa Kamal Dahal’s visit to India from 31 May to 3 June 2023. During the visit, Indian Prime Minister Narendra Modi had expressed India’s commitment to long-term electricity purchase from Nepal, and both nations reached a consensus on this matter.
Following this agreement, various government and private entities in India will engage in power trade with Nepal through short-term, medium-term, and long-term contracts.
According to Basnet, the agreement to export 10,000 MW of electricity in the next 10 years would take the relations between the two countries to a new height.