IPPAN urges govt to sign PTA with India IPPAN urges govt to sign PTA with India
KATHMANDU:
Independent power producers have demanded that the government sign a Power Trade Agreement (PTA) with India and allow tax-free export of electricity generated in Nepal. Their appeal came a day after the country’s three big political parties formed a committee to finalise contents of the pact.
With a target to sign PTA during Indian Prime Minister Narendra Modi’s visit on August 3-4, the three parties — Nepali Congress, CPN-UML and Unified CPN-Maoist — have formed a three-member panel. It comprises Ram Sharan Mahat of NC, Bhim Rawal of UML and Narayan Kaji Shrestha of UCPN-Maoist.
The committee has been given a mandate to finalise the draft with inputs from the Ministry of Energy and forward it to the Indian side at the earliest. The Independent Power Producers’ Association of Nepal (IPPAN), organising a programme today, lauded the efforts of the major parties and urged for the power trade deal to be sealed while keeping the water resources issue and political interests at bay, for now.
IPPAN has demanded that the government make sure provisions like open and non-discriminatory access of electricity produced in Nepal to India, facility to Indian electricity exchanges, along with exemption of export tax, quota limitation and permit requirements be included in draft. “The price of electricity should be based on market rate and there must also be a provision to allow export of electricity produced in Nepal to other markets via India,” said Khadga Bahadur Bisht, president of IPPAN.
Provision of multiple nodal agencies to facilitate export in a competitive way, investment from both nations in installing cross-border transmission lines, and establishment of a regulatory body to resolve disputes are some other suggestions put forth by IPPAN. India has been showing interest to buy electricity produced in Nepal at market price by signing the PTA.
Independent power producers are of the view that since the country will generate surplus electricity after 2016, the power pact will play a vital role in reducing trade deficit, assuring market for export of electricity generated within the country and attracting more investment in hydropower development. They said that if India allows it, in the long run, Nepal will be able to sell electricity in Sri Lanka, Bangladesh and Pakistan.
Earlier, Nepal had sent the power trade pact draft to India in 1996 and 2010. Showing its interest to buy electricity from Nepal, the southern neighbour about three months ago had sent a draft to Nepal for consideration, which had drawn criticism that it allowed export of electricity only from projects with Indian investment.
Even as Nepal and India are yet to reach an agreement in trading power, both countries are involved in export and import of electricity since 1971. Currently, as per IPPAN, Nepal is buying 150 MW from India, while export to India is 25 MW.
Major suggestions
• Open and non-discriminatory access of Nepali electricity in Indian market
• All producers, irrespective of projects, be allowed to export
• Exemption of export tax, quota limit and licence requirement for export
• Price fixing based on market trend
• Provision to allow export of electricity to third countries via India
• Mutual investment in cross-border transmission lines
• Formation of a regulatory body comprising officials from both counties
Source: THT
