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India Lowers Electricity Rate by Rs 13

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India Lowers Electricity Rate by Rs 13
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April 4: The price of electricity imported from India has come down while domestic production has also increased in Nepal.

India has reduced the maximum price of electricity from IRs 20 to IRs 12. On the other hand, the production of electricity has started to increase in Nepal due to the melting of snow. With the onset of monsoon in June / July, Nepal's surplus energy is expected to be wasted.

The Central Electricity Regulatory Commission of India (CERI) has recently issued a notification lowering the maximum power purchase rate from IRs 20 per unit to IRs 12 per unit.

At the same time, the electricity that Nepal buys from the Indian Electricity Exchange Market is expected to be cheaper. The Nepal Electricity Authority (NEA) has been importing electricity from the Indian market at IRs 20 (NRs 32) per unit recently.

Due to the energy crisis in India, NEA was forced to buy electricity at exorbitant price through bidding in the open market.

This had forced NEA to sell electricity purchased at IRs 32 to be sold at an average price of NRs 10 per unit.

Now, NEA is getting electricity at less than that rate.

Most of the hydropower projects in Nepal are based on river flow. When the amount of water in the river decreases in winter, the production of the hydropower project automatically decreases. NEA has been importing electricity from India and supplying it to the domestic market during the dry season.

 

However, India is not able to generate enough electricity due to the shortage of coal. Due to this reason, electricity is being bought and sold at maximum rate in the Indian market due to low production.

 

In view of its negative impact, particularly on the country’s industrial sector, the Indian government has reduced the maximum rate limit.

Indian industries and factories have also been affected by the hike of energy prices. They are also forced to buy electricity at expensive rates.

 

 

 

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