Indian Prime Minister Modi Announces Deal to Purchase 10,000 Megawatts of Electricity from Nepal in Next 10 Years

Indian Prime Minister Narendra Modi has announced a major deal with Nepal, stating that India will purchase 10,000 megawatts of electricity from its neighboring country over the next decade. The announcement was made during a meeting between Prime Minister Modi and his Nepali counterpart, Pushpa Kamal Dahal 'Prachanda', at Hyderabad House in India.

Nepal has prioritized the development of its electricity sector, aiming to establish a long-term agreement to export 10,000 megawatts of electricity to India within the next 25 years. However, the specifics of such an agreement, including the smooth sale of electricity from Nepal to the Indian market, have yet to be determined.

Despite the absence of a formal agreement, Prime Minister Modi's commitment to purchasing 10,000 megawatts of electricity over the next decade represents a significant milestone. If included in the joint statement, it would mark the largest agreement for Nepali electricity.

Nepal has made substantial progress in electricity generation, particularly during the rainy season when it has achieved self-sufficiency. This achievement was made possible by the completion and operation of the 456 MW Upper Tamakosi Hydropower Project. The Nepal Electricity Authority estimates that the country will achieve complete self-sufficiency in electricity generation within the next 2-3 years, even if it remains dependent on India during the dry season.

Currently, Nepal is connected to the national transmission line with a capacity of 2,700 megawatts, of which 1,500 megawatts are consumed domestically. Additionally, India has allowed the generation of 453 MW of electricity for Nepal, subject to annual permission for sale. Consequently, Nepal seeks a long-term agreement during the Prime Minister's visit to India.

During the visit, Prime Minister Modi announced the intention to purchase 10,000 megawatts of electricity from Nepal over the next 10 years, placing it as a central agenda item in the proposed long-term agreement.

Furthermore, both nations signed agreements for the development of the Lower Arun and Phukot Karnali projects. The Lower Arun Project Development Agreement, with a capacity of 669 MW, was signed, along with a Bilateral Agreement regarding the Phukot Karnali project, which has a capacity of 480 MW.

In summary, Indian Prime Minister Narendra Modi's announcement to purchase 10,000 megawatts of electricity from Nepal over the next decade, along with the signing of agreements for the Lower Arun and Phukot Karnali projects, marks a significant step in strengthening the energy cooperation between the two countries.