Nepal, India agree to exchange more power

January 18, 2001
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Kathmandu, Jan. 18 :  The sixth Nepal-India power exchange committee meeting that concluded here today agreed to exchange up to 150 megawatt of electricity between the two countries.

The existing provision allows the two countries to exchange up to 50 megawatt of electricity.

Nepal currently imports about 50 megawatt from India, while India receives about 37 megawatt from Nepal.

The Nepalese delegation to the meeting that began on Jan. 16 was led by executive director of Nepal Electricity Authority Bishnu Bam Malla and the Indian delegation by member of the Central Electricity Authority and ex-officio secretary of the Indian government K.N. Sinha.

At the meeting, the Nepalese side apprised the Indian delegation of the progress made so far in the installation of three more transmission lines, Butwal-Anandnagar, Birgunj-Motihari and Dhalkebar-Sitamadi, as part of the construction work for a 132 kv transmission line linking Nepal and India.

The government has already approved the programme for installation of the three transmission lines and has arranged for funding from the Asian Development Bank for construction of the Nepalese portion of the Butwal-Anandnagar 132 kv transmission line.

Responding to the Nepalese side’s proposal for amending the existing electricity tariff, the Indian side that as it had been mentioning at previous meetings a separate body will be formed for that purpose and will start work on the matter within three months.

His Majesty’s Government has already consented to fix new electricity tariff as the tariff in practice at present was valid from January 1, 1996 to December 31, 1998 only.

The Nepalese side also emphasized the need to carry out a study on installing high quality transmission lines for linking transmission lines between Nepal and India as instructed by the Nepal-India water resources committee meeting held in October 2000.

In its response, the Indian team suggested that as matters concerning the selection of new technology (for high quality transmission lines) does not come within the perview of the power exchange committee, a detailed study needs to be carried out before taking a decision in this regard.

The meeting also discussed matters concerning technological improvements at local level to regularize power supply in border areas.

Nepal and India currently exchange electricity at 1.60 Indian rupees per unit. The meeting also agreed to settle in the near future bills overdue between the two countries.

The next meeting of the committee will be held in New Delhi, India in September 2001.