India Approves 16-Hour Electricity Supply to Nepal from April

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India has renewed its permission to import electricity from April to August. India has renewed it to provide electricity for 24 hours from March 31 to April 14, 16 hours from 3 April 15 to June 30, and 24 hours from July 1 to August 31. However, Nepal will start exporting to India and Bangladesh from the last week of mid-June.

India had repeatedly renewed its permission to import electricity for 12 and 16 hours In March–April 2025, but it had been providing electricity for 24 hours until Tuesday. From Wednesday (April 1), the Nepal Electricity Authority will be allowed to import electricity for only 16 hours a day.

India has renewed its permission to import 654 megawatts of electricity to Nepal at the competitive rate of the Indian Energy Exchange (IEX) until next August. India had to renew its permission again to purchase electricity through IEX from Wednesday. Hitendra Dev Shakya, Managing Director of the Nepal Electricity Authority, said that the permission has been renewed to allow electricity import for 16 hours a day.

Nepal has been importing electricity from India every year to meet its domestic demand due to the decrease in water flow in rivers and streams during winter. The Authority has been allowed to import 600 MW of electricity at a competitive rate through the 400 kV Dhalkebar–Muzaffarpur transmission line and 54 MW from Tanakpur–Mahendranagar.

India has renewed the permission to import electricity for 16 hours in April and May and in the following months in 24-hour (RTC) mode. The Authority says that electricity can be imported from 2 am to 6 pm in April and from 4 am to 8 pm in May.

The Authority has stated that since India has renewed the permission, there will be no problem in importing electricity. November–December 2024, when India allowed the import of electricity during winter, it allowed only 20 hours a day until March 15, 2025 and only solar hours (6 am to 6 pm) from March 16, 2025 to June 30, 2025. Since March 16, 2025, the NEA had been importing electricity for 12 hours a day, but on March 28, 2025, it allowed the import of electricity for 16 hours a day. After that, electricity was imported from 6 am to 5 pm and from 11 pm to 4 am.

Although India has renewed the permission, in April–May, when electricity was not received from India as per demand, supply to industries was partially cut off. At that time, the Nepal Electricity Authority (NEA) itself had stated that electricity could not be imported from the 132 kV line connected to Bihar despite maximum efforts, as demand in India was high due to various reasons, including the Indian Premier League (IPL) and rising temperatures. Nepal was therefore unable to purchase electricity as required. The NEA had clarified that the power cuts occurred because supply to the industrial sector had to be reduced due to high demand in India.

This time too, the IPL has started in India from Saturday. Therefore, experts say there is again uncertainty over whether electricity will be available as per demand.

The Authority has been importing an average of around 400 MW of electricity. It has also stated that electricity demand within the country is rising with the increased use of electrical appliances since the beginning of summer.

Experts say that energy security remains a challenge during the dry season and that the government has no option but to move forward with reservoir-based and semi-reservoir-based hydropower projects.

The Authority has been purchasing electricity through competitive bidding in the Indian Energy Exchange (IX) day-ahead and real-time markets. Under this system, bidding for price and quantity takes place a day before purchase.

The Authority had also signed a bilateral agreement with PTC India to purchase 180 MW of electricity at Rs 6.95 per unit for the period from January 2026 to May 31. Under this agreement, 100 MW of electricity can be imported through the Dhalkebar–Muzaffarpur transmission line and 80 MW from Bihar’s 132 kV transmission line. Despite the controversy surrounding the agreement, the NEA has continued importing electricity.

The Nepal Electricity Authority (NEA) has said that 220 MW of electricity can be imported through the 132 kV Kataiya (India)–Kushaha (Nepal), Raxaul–Parwanipur, and Gandak (Nepal)–Ramnagar (India) transmission lines, and 50 MW through the 132 kV Mainhiya (Nepal)–Sampatiya (New Nautanwa, India) transmission line. India has allowed imports in round-the-clock (RTC) mode for 16 hours until April 15 and thereafter.

The NEA has fixed the tariff for electricity imported through different transmission levels. The rate has been set at Rs 8.22 (Rs 13.15) per unit for 132 kV, Rs 8.91 (Rs 11.58) per unit for 33 kV, and Rs 9.55 (Rs 15.28) per unit for 11 kV lines. Nepal will be able to import up to 350 MW of electricity through PEC. The Authority expects this to further strengthen electricity supply management during the dry season in the months of  March–May.

The Authority had issued two notices to import electricity at open competitive rates considering the dry season. On January 19, it invited proposals to purchase 100 MW of electricity from India. The Authority had set a ceiling rate of Rs 6.60 per unit for February–March and Rs 6.90 per unit for April–May. Although the deadline for application was January 28, no proposals were received.

As per system requirements during the dry season, the Authority again invited proposals on February 13 to purchase 100 MW of electricity for April and May, with a submission deadline of February 22. However, the NEA later amended the notice on February 21, extending the deadline to February 27. Despite setting the maximum rate at Rs 6.90 per unit for the period from April 1 to May 31, no proposals were received.

A board meeting of the NEA held on December 15, chaired by then Energy Minister Kulman Ghising, had decided to invite sealed quotation proposals from Category-1 Indian traders (commercial companies), allowing 10 days to submit bids for the purchase of 100 MW of electricity during the dry season through open competition. The Authority had sought proposals in line with this decision.

 

Ekantipur