India, Nepal finally sign power trade agreement

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SME Times News Bureau | 22 Oct, 2014
Nepal and India in Kathmandu on Tuesday formally signed a landmark power trade agreement (PTA), allowing exchange of electricity, which is expected to open up new vistas of cooperation in the hydropower sector between the two energy-starved nations.

In a ceremony held at the Prime Minister's Office in Nepal, the energy secretaries of the two neighbours signed the final agreement. The agreement was initially signed in New Delhi Sep 4. Nepal's Energy Secretary Rajendra Kishor Chettri and his Indian counterpart Pradeep Kumar Sinha signed the final text.

Nepal's Energy Minister Radha Gyawali, Chief Secretary Leela Mani Poudyal, Indian Ambassador to Nepal Ranjit Rae and other senior government officials from Nepal and India were present during the signing ceremony.

After the initial signing, the text of the agreement -- titled "Agreement between the Government of Nepal and the Government of the Republic of India on Electric Power Trade and Cross-Border Transmission Interconnection and Grid Connectivity" -- was forwarded to the respective cabinets of both countries for ratification.

The agreement aims at enhancing the friendly relations and mutual trust between Nepal and India through increased cooperation in the field of transmission interconnection, grid connectivity and power trade. It facilitates governments, public and private enterprises in planning and construction of interconnection facilities and power trade.

The agreement, which comes into effect from Tuesday itself, envisages creation of a power/energy secretary-level joint steering committee and a joint secretary-level joint working group to promote and facilitate cooperation in the areas identified under the agreement that includes planning and identification of cross-border interconnections, selection of transmission technologies, preparation of detailed project reports (DPRs), and modes of investment for timely implementation of projects.

This is an important step to curb the increasing energy crisis in Nepal, Nepal's Energy Secretary Chettri told reporters after the signing of the agreement.

"Construction of some cross-border transmission lines between Nepal and India is making good progress and as soon as the construction of Muzaffarpur-Dhalkebar Transmission Corridor will be over, we will have enough grids to import and export electricity," said Chettri.

The secretary-level steering committee will convene once a year while the joint secretary-level working group will meet twice in a year.

Indian Power Secretary Sinha said India has come up with open and broad mind to assist Nepal in the energy sector and there are many more possibilities of cooperation between the two nations. The agreement would pave the way for Nepal to do energy business with India and a third country and if any disagreement arises, the two sides would sit together and resolve them amicably, he added.

"The two sides had agreed to sign the agreement within 45 days of the visit of Indian Prime Minister Narendra Modi to Nepal Aug 3-4. The initial agreement was signed within that deadline. This is a historic achievement," said Sinha.

"As India advances with modern technology in transmission line expansion, we are ready to extend all help and cooperation to Nepal in this respect."