Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: India has given the green light to a Memorandum of Understanding (MoU) for electricity trade with Nepal, marking a significant milestone in their bilateral relations. This development stems from discussions initiated during Prime Minister Pushpa Kamal Dahal’s visit to India last May when the two nations initially broached the subject of electricity trade.
The negotiations, however, encountered a delay in formalizing the agreement, pending approval from the Indian Council of Ministers. Following constructive bilateral talks, Indian Prime Minister Narendra Modi announced during a public address that India intends to procure 10,000 megawatts of electricity from Nepal over the course of a decade.
Additionally, India committed to expedite the approval process through its Council of Ministers, further solidifying their commitment to this energy partnership.
Nepal had long been advocating for a lasting electricity trade arrangement with India, and Prime Minister Dahal’s visit helped bring this agenda to the forefront. Just last week, the Indian Cabinet formally endorsed the proposal for a long-term electricity trade pact with Nepal.
Shankar Prasad Sharma, Nepal’s ambassador in Delhi, has officially confirmed this development. While the decision has yet to be posted on the Press Information Bureau’s website, which typically publishes decisions made by the Indian Council of Ministers, Ambassador Sharma took to the social network ‘X’ on Tuesday morning to share the news.
He announced that India has agreed to import 10,000 megawatts of electricity from Nepal over the next decade, emphasizing the positive impact this will have on Nepal’s economic development and restructuring efforts.
Ambassador Sharma expressed his enthusiasm, stating, “This is a moment we’ve been eagerly anticipating. It represents a substantial step forward for Nepal in the realm of electricity trade and opens the door for us to trade our electricity with India. Further action plans will be devised in the near future to ensure successful implementation.”
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