KATHMANDU: The electric power trade agreement between Nepal and India has been extended for a three-month period.

While the agreement is typically renewed annually, this time it has been prolonged for a shorter duration of three months.

Under the terms of the renewed agreement, Nepal has the capacity to import 554 megawatts of electricity from India, as disclosed by the Ministry of Energy, Water Resources, and Irrigation.

The power trade agreement between Nepal and India was initially signed in 2078 BS, facilitating the import and export of electricity between the two nations.

This latest renewal ensures the continuation of electricity imports, with the capacity set at 554 megawatts.

As Nepal enters the dry season, domestic hydroelectric production declines, necessitating electricity imports from neighboring countries to meet demand.