India Council of Ministers Gives Nod to Long-term Power Purchase Agreement with Nepal
5 September 2023
The long-term electricity trade agreement between the Governments of India and Nepal has formally received approval from the Council of Ministers of India. This paves the way for Nepal to export up to 10,000 megawatts of electricity to Nepal over a period of 10 years. The long-term power purchase agreement will soon be signed at a secretary level meeting of the two countries, which may take place in Nepal. Following the initial 10 years, a decision will be made regarding the export of electricity for up to 25 years. Furthermore, if new circumstances arise during this period, adjustments will be considered.
The power purchase agreement was initiated during Nepal Prime Minister Pushpa Kamal Dahal’s visit to India on 31 May–3 June 2023. It was announced by India Prime Minister Narendra Modi at a joint press meet with Prime Minister Dahal.