March 19: Nepal and India have agreed to formulate a modality to supply electricity from Nepal to multiple states of India through central transmission line via Bihar grid.  The 14th meeting of the Nepal-India Power Exchange Committee concluded on March 17 at New Delhi, India, decided to prepare the modality for power export from Nepal to various states in India via Bihar within a month.

The meeting co-chaired by Executive Director of the Nepal Electricity Authority Kulman Ghising and member of Power System member of the Central Electricity Authority of India Ashok Kumar Rajput agreed to finalize the modality within a month for the same.

The agreement has ensured the additional market for the sale of surplus electricity during rainy season", Executive Director Ghising said.  Kataiya (Bihar)-Kushaha (Nepal) and Raxaul-Parawanipur 132-KV transmission line are connected with Bihar.

As per the Power Exchange Agreement, the meeting has determined new the price of per unit electricity at Rs 11.54 for the fiscal year 2022/23. The new rate is not on a take-or-pay modality. We have to pay the rate, only if we purchase electricity. This rate is cheaper than the current Indian market and we will get the same rate even during export;” said Ghising.

When the NEA made its first-ever effort to buy electricity from India through competitive bidding for long-term power supply in December last year, the Indian companies had proposed to sell power to Nepal at Rs 7.50 and Rs 8.70 per unit for February-March and April-May, respectively. The prices they quoted are higher than the rate agreed between Nepal and India during the Power Exchange Committee meeting.

Buying electricity from India’s competitive market has been even more expensive. Up to INR 12 per unit has to be paid for the power on which an additional 1.5 Indian rupees is added towards tariff for transmission charges, according to the NEA. “Hence, the rate fixed, at present, is cheaper than others,” the power utility was quoted as saying in the statement. 

The NEA has been importing electricity from India’s Bihar, Uttar Pradesh and Uttarakhand as per the electricity exchange agreement. Only Bihar and Uttar Pradesh are connected to Nepal through 132 KV transmission lines.

Nepal imports electricity from India under three separate agreements. Nepal can import power from India based on the power exchange agreement, Mahakali Treaty and open competition in the Indian power market.

The electricity purchased in the open market is being imported through the 400kV Dhalkebar-Muzaffarpur cross-border double-circuit transmission line. Nepal also sells electricity in the Indian market through this power line.

 Nepal Electricity Authority traded surplus electricity worth Rs 8.4 billion to Indian since the beginning of the current fiscal year 2022/23 to till the date.