POKHARA: Nepal and India have reached an agreement for the import of electricity from India’s Bihar, Uttar Pradesh, and Uttarakhand states for the coming year. The decision was made during the 17th meeting of the Nepal-India Power Exchange Committee held on March 12 and 13 in Pokhara.
The Nepal Electricity Authority (NEA) stated that electricity procurement through the Power Exchange Committee (PEC) has been in continuous operation since 1992, forming a key foundation for Nepal-India energy cooperation.
The meeting also finalized the electricity purchase rates for the next year, Hitendra Dev Shakya, Managing Director of NEA, said. On the Nepal side, the delegation was led by Shakya, while India was represented by Vijay Kumar Singh, Board Member of the Central Electricity Authority, India.
The NEA’s board authorized the executive director to participate in the meeting, agree on electricity purchase rates, and sign the relevant agreements. During discussions, India proposed a 5.5 percent increase in electricity rates due to higher generation and supply costs.
Nepal, citing current market rates and analysis of the Indian electricity market, argued that a rate increase was unnecessary. After detailed deliberations, both sides agreed on a modest 1.5 percent rate increase, the same as the previous year.
Under the agreement, electricity purchased through 132 kV transmission lines will be priced at Rs 8.22 per unit, at 33 kV at Rs 8.91 per unit, and at 11 kV at Rs 9.55 per unit. The structure of purchase rates will be reviewed again in the coming year.
This arrangement is expected to strengthen Nepal’s electricity supply management during the dry months of March and April, when demand typically rises. Currently, the NEA imports around 12,000–14,000 MWh per day, which is expected to increase during the dry season.
The meeting was also attended by senior officials from the Ministry of Energy, Water Resources and Irrigation, the Ministry of Foreign Affairs, and Suman Shekhar, First Secretary at the Indian Embassy in Kathmandu.
Both sides expressed confidence that the agreement would further enhance Nepal-India energy cooperation, strengthen regional energy security, and promote long-term friendly relations between the two countries.
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