KATHMANDU: A long-term energy deal between Nepal and India, to be signed during the upcoming visit of India’s External Affairs Minister S Jaishankar, will be a milestone, said Prime Minister Pushpa Kamal Dahal ‘Prachanda’.
During Dahal’s India visit in May-June, the two countries agreed to sign a long-term power agreement where India would import 10,000 megawatts from Nepal in 10 years. However, the formal agreement could not be signed at that time. Now, both the countries have formalised the long-term inter-government power trade agreement, which is expected to be signed during Jaishankar’s visit to Nepal. “Soon, we are going to sign the long-term energy deal with India,” Dahal said on Friday while inaugurating the second largest electricity substation whose purpose is to export electricity to India.
The mid-term and long-term energy trading deal between Nepal and India will be signed in Kathmandu. For this, senior Indian officials are also arriving in Kathmandu, the Prime Minister added. The 25-year long-term agreement was initiated when Dahal visited India between May 31 and June 3. India’s Prime Minister Narendra Modi had announced during a joint press meet with Dahal that the southern neighbour would buy 10,000 MW of electricity in 10 years from Nepal under the long-term power trade agreement.
“During my India visit, we laid a good foundation for energy trade between Nepal and India. To materialise the long-term power trade which was agreed between Nepal and India and to use the abundant water resources of Nepal in a practical sense, we are going to make a special announcement in Kathmandu,” said Dahal, whose government is battling due to poor governance, service delivery, recession in the economy, poor governance among others.
Dahal inaugurated the electricity substation, which was largely built by Indian consultants and Indian construction companies and is largely instrumental in exporting energy from Nepal and India from the eastern part.