KATHMANDU: Nepal has received permission for power trading in the Indian energy market at a competitive rate.

The Energy Exchange under India’s Power Ministry on Monday granted permission for Nepal’s power to be traded in Indian power exchange market. In the first phase, 39 MW power, including 24-MW produced from Nepal Electricity Authority-owned Trishuli hydropower and 15-MW Devighat powerhouse, has been permitted for trading in Indian Energy Exchange.

The NEA was scheduled to start exporting the power through Dhalkebar-Mujaffapur 400-KV inter-country transmission line from midnight Tuesday. This transmission line has been used merely to import power.

Nepal had already received permission for purchasing and importing power from Indian Energy Exchange. With this, the NEA has been importing power through Indian Energy Exchange at a competitive rate since last April 30 as per the need. After obtaining the approval, the power trade between Nepal and India has entered a new phase.

Minister for Energy, Water Resource and Irrigation Pampha Bhusal said Nepal has become the first country in the South Asian region to enter into the agreement for power import and export from and to Indian energy exchange market.

“We have been permitted for the trade of surplus power after continued efforts at political, diplomatic and administrative levels. This is a milestone for power trade between the two countries”, Minister Bhusal added.

She further said, “We have also expected the approval for trade of power produced from the 456-MW Upper Tamakoshi, 69-MW Marsyangdi and 45-MW Upper Bhotekoshi power house in near future”.