In a significant development, Nepal and Bharat have signed a long-term agreement on electricity trade. The agreement outlines Nepal’s commitment to exporting 10,000 megawatts of electricity to India over the next ten years. The signing ceremony took place in the presence of Nepal’s Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet.
Key Signatories and Bilateral Understanding
The agreement was signed by Gopal Sigdel, the Secretary at the Ministry of Energy, Water Resources, and Irrigation for Nepal, and Pankaj Agrawal, India’s Energy Secretary. The understanding for electricity exports was reached during Prime Minister Pushpa Kamal Dahal’s visit to India from May 31 to June 3 the previous year. Prime Minister Narendra Modi expressed India’s commitment to long-term electricity purchase from Nepal during the visit, leading to a consensus between the two nations.
Bharat Council of Ministers’ Approval
The Bharat Council of Ministers has already endorsed the Memorandum of Understanding (MoU) between the two countries, marking a crucial step in formalizing the agreement. This endorsement occurred during the ongoing two-day visit of Bharat’s External Affairs Minister, Dr. S Jaishankar, starting Thursday.
Comprehensive Power Trade Opportunities
Under the agreement, various government and private entities in Bharat will engage in power trade with Nepal through short-term, medium-term, and long-term contracts. Additionally, private sectors in Nepal are encouraged to participate in the import and export of electricity, provided they complete the necessary procedures.
Historic and Significant Deal
The joint statement issued during the Nepalese Prime Minister’s visit to India last year emphasized the historic and significant nature of the power export deal. Both nations expressed their commitment to enhancing cooperation in the energy sector, considering it a major milestone in their relations.
Nepal’s Energy Development Strategy
Nepal has already formulated an energy development strategy with the ambitious goal of producing 28,000 megawatts of electricity in the next 12 years. Out of this, the aim is to export 15,000 megawatts of electricity to various countries, including Bharat. The agreement signed now aligns with Nepal’s broader energy objectives.
Positive Outlook and Call for Accelerated Projects
Minister Shakti Bahadur Basnet expressed his happiness over the meaningful cooperation in the energy space between the two countries. He highlighted the need to take this cooperation to a logical conclusion and urged Bharat officials to accelerate other projects, emphasizing the importance of timely completion. The Energy Minister voiced hope for further investment in large projects across sectors, foreseeing positive impacts on bilateral relations.
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