Kathmandu — The Nepal Electricity Authority (NEA) has failed to receive any proposals after calling for competitive bids to purchase electricity for the dry season.
The NEA had invited proposals on January 19 to purchase 100 megawatts of electricity from India for the period from February to May. Although the notice set January 28 as the deadline for applications, no proposals were submitted, according to NEA spokesperson Rajan Dhakal.
The authority had set a ceiling price of Rs 6.60 per unit for electricity to be imported from February to March and Rs 6.90 per unit for April and May. Sources say these price limits discouraged Indian power traders from submitting bids.
The decision to invite sealed quotations from Category-1 Indian power traders through open competition was taken at an NEA board meeting on December 15, chaired by then Energy Minister Kulman Ghising. The board had approved the purchase of 100 MW of electricity for the dry season, allowing a 10-day period for bidding and authorising the authority to seek regulatory consent if required. The recent call for proposals was issued in line with that decision.
Nepal imports electricity from India during the winter months as domestic power generation declines. India has renewed permission for Nepal to import up to 654 MW of electricity at competitive rates through the Indian Energy Exchange (IEX) for the period from January 1 to March 31, 2026. The approval was granted by the Central Electricity Authority under India’s Ministry of Power, allowing round-the-clock imports from the IEX day-ahead and real-time markets.
Under the arrangement, the NEA is permitted to import 600 MW through the Dhalkebar–Muzaffarpur 400 kV transmission line and 654 MW through the Tanakpur–Mahendranagar line.
Nepal purchases electricity from the IEX through a competitive bidding process, in which prices and quantities are determined a day in advance. Earlier, on July 29, 2025, proposals were invited from government-owned Indian traders PTC India and NTPC Vidyut Vyapar Nigam (NVVN) for electricity imports through bilateral agreements. At the time, Hitendradev Shakya was the Managing Director of the NEA, and Deepak Khadka served as Minister for Energy.
PTC India submitted a proposal on August 8, 2025, offering electricity at Rs 6.74 per unit for one month. The deadline was later extended by 15 days to September 23, but the process stalled as the NEA board failed to take a decision. On September 3, 2025, NVVN proposed to sell 200 MW of electricity through the Dhalkebar–Muzaffarpur line and 30 MW through the Tanakpur line at Rs 7.70 per unit.
Following the Gen-G movement, Kulman Ghising was appointed Energy Minister at the end of Bhadra and replaced Shakya as Managing Director, appointing Manoj Silwal to the post. NVVN later responded to the NEA’s request for a rate revision, offering electricity at Rs 7.67 per unit.
Meanwhile, on September 22, 2025, PTC India submitted a revised proposal to sell electricity at INR 6.95 per unit from January to May 2026 through the Dhalkebar–Muzaffarpur 400 kV line and the 132 kV Bihar–Nepal line.
Silwal assumed office on September 23, and an NEA board meeting on September 26 decided to issue a letter of intent to PTC India to import 180 MW of electricity round the clock for five months at Rs 6.95 per unit. A power purchase agreement was subsequently signed on October 13, 2025. After receiving approval from the Electricity Regulatory Commission, the proposal was forwarded to the Indian authorities on October 31.
The NEA board later directed the Managing Director to expedite implementation of the agreement, citing potential liabilities as approval from India’s Designated Authority had not yet been received. The Indian authority eventually granted approval on January 3, 2026.
At an NEA board meeting on January 6, discussions were held following India’s approval, but no decision was reached. On January 13, Managing Director Shakya stated that electricity imports under the PTC agreement would commence from that date.
Separately, NVVN had submitted a proposal on December 15 offering to sell 100 MW of electricity at Rs 6.60 per unit for three months from January to March. The proposal was valid until 19 December, but no decision could be made as the NEA board did not convene.
The NEA has now stated that it will import 654 MW of electricity at competitive rates during the winter and procure additional power as needed through the Nepal-India Electricity Exchange Committee (PEC). Imports through the PEC are capped at 350 MW. Electricity rates through the PEC for 2025 will remain applicable until March 2026, Shakya said.
According to the authority, electricity imported through the 132 kV transmission line is priced at Rs 8.10 per unit (Rs 12.96 including charges), while power imported via the 33 kV line costs Rs 8.78 per unit (Rs 14.04). Electricity imported or exported through the 11 kV line is priced at Rs 9.41 per unit (Rs 15.05).
A new PEC meeting has not been held for 2026, so the rates fixed for 2025 will remain in effect until next March,” the authority said.
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