Nepal and India inked a long-term agreement on electricity trade at a secretary-level meeting held in the presence of Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet, on Thursday.
Secretary at the Ministry of Energy, Water Resources and Irrigation Gopal Sigdel and India's Energy Secretary Pankaj Agrawal inked the deal during the two-day visit of India’s Foreign Minister Subrahmanyam Jaishankar, in line with an understanding reached between Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi during the former’s visit to India on May 31-June 3 for the export of 10,000 MW from Nepal in the next 10 years.
This agreement has made way for private sectors as well as government entities from Nepal and India to engage in power trade through short-term, medium-term and long-term contracts. Notably, the government of Nepal has prepared an ambitious energy development strategy, with the objective of generating 28,000 MW in the next 12 years, of which it plans to export 15,000 MW to India and other countries.
Nepal’s private sector has welcomed the energy deal with India. Earlier in the day, a delegation under India’s Energy Secretary Agrawal paid a courtesy call on Energy Minister Basnet. On the occasion, Minister Basnet expressed hope that the agreement on power trade will enhance Nepal-India relations further.
Meanwhile, the seventh meeting of Nepal-India Joint Commission concluded by reviewing the entire gamut of bilateral partnership. Minister for Foreign Affairs NP Saud and his Indian counterpart Subrahmanyam Jaishankar co-chaired the meeting, which discussed trade, connectivity, development projects.
Jaishankar held separate meetings with Prime Minister Pushpa Kamal Dahal, President Ram Chandra Paudel and other political leaders. After the meeting with PM Dahal, Jaishankar recalled the former’s “successful visit to India in June 2023 which has imparted a new momentum to our ties.”
Jaishankar said they discussed the “follow-up, including through Joint Commission”, adding that India-Nepal friendship is indeed unique and is moving from strength to strength.
The Ministry of Foreign Affairs said various aspects of Nepal-India relations were discussed under the thematic areas of economic relations, connectivity, trade and transit, power and water resources, education and culture and political matters.
Key agreements
- Long-term power trade
- Cooperation in renewable every development
- Mutual satellite
- Handover of the fifth tranche of the post-Jajarkot earthquake relief supply
- Inauguration of three cross-border transmission lines
- Agreement on high-impact community development project
- Agreement between Nepal Academy of Science and Technology and NewSpace India Limited
