Private Sector Delighted with Empowering Power-Purchase Agreement


Kathmandu, The private sector has expressed its happiness over the long-term power agreement signed between Nepal and India on Thursday. They said that the agreement raised a ray of hope among them for the investment in the hydropower projects.

President of the Independent Power Producers’ Association, Nepal Ganesh Karki said that the private sector was excited by the signing of the agreement for the long-term power trade and urged the governments of both countries for its proper implementation.

 “The agreement signed for the export of at least 10,000 megawatts of electricity to India in 10 years is a very welcome step. It is historic work of the present government in the field of the hydropower sector as it has paved the way for the maximum utilisation of hydropower potential by increasing investment in this sector,” he told The Rising Nepal.

Stating that with the inking of the agreement between Nepal and, Nepal’s electricity will have easy access to India’s huge market, he said that it would encourage domestic and foreign investors to invest in Nepal’s hydropower projects. A long-term electricity trade agreement was signed between the governments of Nepal and India on Thursday.

According to the agreement, within the next 10 years, India will purchase 10,000 megawatts of electricity from Nepal. Also, the agreement has ensured an export route for electricity produced in Nepal. Karki stressed the need to create an investment environment by making amendments to the existing acts and policies to attract investment in hydropower.

“It is a must to increase investment in the hydropower sector to produce electricity to meet not only the national demand but also export it to India after the latter committed to importing at least 10,000 MW in 10 years. Bangladesh is also showing interest in purchasing power from Nepal. So, the government should address the hurdles in the process of constructing hydropower,” he said, The government has set a target of generating 28,000 MW of hydropower by 2035, Out of that, 13,500 MW of electricity is expected to be consumed domestically and the remaining 15,000 MW of electricity will be exported to neighbouring countries, India and Bangladesh. Currently, Nepal’s power generation capacity has reached 2,892 megawatts.

Meanwhile, president of Nepal Chamber of Commerce Rajendra Malla has said that the 1,200 MW capacity Budhigandaki Hydropower Project should be promoted immediately in a public-private partnership.

Addressing the Agriculture, Tourism and Business Promotion fair organised by the Gorkha Chamber of Commerce in Gorkha, President Malla emphasised that the construction process of Budhigandaki hydropower project should be started immediately in the public-private partnership.

He said, “There has been an agreement to export 10,000 megawatts of electricity from Nepal to India in 10 years. To implement it, it is necessary to advance the Budhigandaki Hydropower project in the public-private partnership. The private sector is ready to invest in it.” He said that the existing trade deficit could be reduced by exporting electricity.

Meanwhile, our Bhairahawa correspondent said that with the commissioning of the Nepal-India cross-border 132 kV double circuit transmission line, electricity up to 200 megawatts can now be transmitted from it. The 132 kV double circuit transmission line from Mainahiya in Rupandehi to Sampatiya in India has been commissioned.

Minister for Foreign Affairs NP Saud and Minister for External Affairs of India Dr. S Jaishankar jointly inaugurated the Mainahiya-Sampatiya 132 kV transmission lines on Thursday. Hari Prasad Pandey, chief of the Mainahiya-Sampatiya 132 kV transmission line project, said that a successful test was also conducted by charging the transmission line.

With the successful test, now the way to export electricity to India through this transmission line has been paved, he said. Pandey said that the transmission line was built to export electricity produced in the country to India.

He said that 180 to 200 megawatts of electricity can be bought and sold from the transmission line. At present Uttar Pradesh has structures of only 33 kV transmission lines. The Mainahiya-Sampatiya transmission line is now ready, and the cross-border electricity trade between Nepal and India will become easier, Pandey said.

A total of 96 towers have been constructed in the 28.5 km long transmission line project. As Uttar Pradesh, India’s largest state, has the first and shortest 132 kV line, Nepal will be able to export maximum power through this line.

The substation required for the transmission line has been constructed in Mainahia of Siyari Rural Municipality. From the substation built here, a transmission line has been constructed by connecting the substation of Sampatiya (New Nautanwa) located in Uttar Pradesh, India.

The sixth meeting of the Energy Secretary-level Joint Steering Committee held between Nepal and India in Pokhara in January 2019 agreed to construct the New Nautanwa-Mainahiya line between India’s Uttar Pradesh and Nepal.

After this, in October 2019, the seventh meeting of the Energy Secretary-level Joint Steering Committee held in Bangalore, India, decided to connect the transmission line to the New-Nautanwa (Sampatiya, India) substation.


Source: The Rising Nepal