Agreement on "Electric Power Trade, Cross-Border Transmission Interconnection and Grid Connectivity" with Nepal

No: ----- Dated: Sep, 24 2014

Agreement on "Electric Power Trade, Cross-Border Transmission Interconnection and Grid Connectivity" with Nepal

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the India-Nepal Agreement on "Electric Power Trade, Cross-Border Transmission Interconnection and Grid Connectivity".

The agreement will facilitate and further strengthen cross-border electricity transmission, grid connectivity and power trade between Nepal and India. Nepal is currently importing about 200 MW electricity from India annually. New cross-border transmission lines are under construction, which will more than double the transmission capacity, over the next two years. The agreement will also provide a framework for imports, by Indian entities, of surplus power generated from future hydroelectric plants in Nepal, on mutually acceptable terms and conditions.

Background:

The document was earlier initialled on 4th September 2014, in accordance with the understanding reached by the two countries, during the Prime Minister's visit to Nepal in August 2014, that negotiations on the power trade agreement will be concluded within 45 days.