India Agree to buy additional 251 MW of Power from Nepal

India has agreed to purchase an additional 251 MW of electricity from Nepal, bringing its total import to 941 MW. External Affairs Minister Dr S Jaishnakar announced the new electricity deal with Nepal after meeting the visiting Nepalese Foreign Minister, Dr Arzu Rana Deuba, in New Delhi on 19 August 2024.

The Nepalese foreign minister, Dr Arzu Rana Deuba, is on a five-day official visit to India from 18 to 22 August 2024.

The Nepalese foreign minister's visit comes after the K P Sharma Oli government was sworn in in Nepal in July 2024. In a sign of improving ties between the two countries, Indian Foreign Secretary Vikram Misri visited Nepal on 11 and 12 August 2024, and the Nepalese Prime Minister attended the 3rd Voice of Global South Summit, hosted by Prime Minister Narendra Modi on 17 August 2024. 

Electricity Export from Nepal to India 

Nepal, blessed with abundant hydropower potential, became a net exporter of electricity last year.

• During Prime Minister Narendra Modi’s visit to Nepal in 2014, an India-Nepal Power Trade Agreement was signed, which provided for the sale of Nepal's surplus electricity to India.
• In October 2021, India agreed to import 39 MW of power from Nepal for the first time.
• With the recently concluded deal in August 2024, India has agreed to import 941 MW of electricity from 28 hydel projects in Nepal. 
• India has also signed a long-term energy deal with Nepal to import 10,000 MW of electricity in the next 10 years starting this year. 
• Nepal also exports power to India by selling in the day-ahead market of the Indian Energy Exchange.

Current Import of Electricity from Nepal

• Currently, Nepal exports 620 MW of electricity through the 400 kV Dhalkebar-Muzaffarpur cross-border transmission line.
• Another 70 MW is being exported via the 132 kV Mahendranagar-Tanakpur transmission line.
• The Nepal Electricity Authority has also entered into medium-term power sales agreements with state electricity boards in Haryana and Bihar.
• For the first time, Bihar has agreed to buy electricity from Nepal through a medium-term power sales agreement.