India proposes to sell 500 MW electricity to Nepal

Power Trading Corporation (PTC) of India has written to the Ministry of Water Resources with a proposal to sell 500 MW of electricity to Nepal, Kantipur daily reported.

PTC has mentioned in the letter it can supply electricity for 20 to 25 years at a cost of IRs. 3.60 per unit (IRs. 3 for the electricity and 60 paise as transmission charge). If Nepal government accepts the proposal the transmission will start within 18 months from now.

Water resource ministry has already forwarded the proposal to the Prime Minister, Vice-Chairman and members of National Planning Commission and Finance ministry officials for contemplation. Water resource secretary Shankar Prasad Koirala said the initial response from all sides is positive.

The ongoing problem of power outage for long hours can be resolved within 18 months if a political consensus is created to purchase electricity from India.

High voltage cross border transmission lines need to be constructed to import electricity in large quantity. If the proposal is accepted cross-border transmission lines will be constructed from Muzzafarpur of India to Dhalkebar of Nepal.

PTC’s proposal mentions India will construct the transmission lines up to Nepal border and Nepal should construct the transmission lines from Nepal border.