NEA: Power Pact with India to be Renewed

Nepal Electricity Authority (NEA) is preparing to renew the power pact with India via Dhalkebar-Muzaffarpur cross-border transmission line. The current pact ends in May of this year.

NEA has contacted NTPC Vidyut Vyapar Nigam (NVVN) of India to begin renegotiations for the supply of electricity. NEA and NVVN will soon meet in Kathmandu to further negotiations.

Presently NEA is importing 135 MW of electricity through the Dhalkebar-Muzaffarpur transmission line at IRS. 3.60 per unit. NEA now plans to import 80MW of electricity. Regarding this, Prabal Adhikari, Chief of Power Trading Department of NEA said, “Imports will be reduced, as domestic hydropower projects are likely to ramp up electricity generation in coming days due to the higher water level in river basins.” NEA will also request NVVM to keep the electricity tariff intact for the new agreement.

The import of electricity from Dhalkebar-Muzaffarpur transmission line began in February last year after the cross-border transmission line was inaugurated by former Prime Minister KP Sharma Oli and Indian Prime Minister Narendra Modi. This import has helped Nepal eliminate power cuts from Kathmandu Valley and other major cities of the country.

Nepal is now importing 369MW of electricity in total from India. The power is being imported through nine different cross-border transmission lines; the major ones being Dhalkebar-Muzaffarpur, Kataiya-Kushhawa, Tanakpur-Mahendranagar and Ramnagar-Gandak transmission lines.

Edited by – Sushil Awale