Nepal Power Exchange Ltd. and Manikaran Power Ltd., India on Monday signed a power trading agreement amidst a programme organized by Independent Power Producers’ Association of Nepal (IPPAN), in the presence of Energy Minister Pambha Bhushal. This was for the first time that private sector organizations of Nepal and India signed an agreement to facilitate power trading between the two neighbouring countries.
The agreement was inked between Ashish Garg, managing director of NPE and Navajeet Singh Kalsi, managing director of Manikaran Power Ltd. The agreement will allow Nepal to sell 500 MW of electricity to India in the beginning and also opens Indian market for Indian power traders for further trading in hydropower, according to IPPAN.
Under the agreement India’s Manikaran Power will invest in 15 per cent of share belonging to NPE, which is equivalent to NRs. 300 million. Speaking as chief guest during Nepal Power Market Summit 2022 in Kathmandu on Monday Energy Minister Bhushal said that Nepal aims to export its surplus electricity to India by increasing its current electricity generation capacity, which comes around 200 MW in peak hour. Appreciating the important role played by Nepalese private sector in hydropower development minister Bhushal said Nepal government is working towards allowing private sector of Nepal to directly sell electricity in the Indian market.