Nepal's power union welcomes energy pact signed during PM's India visit

An independent power association in Nepal on Sunday welcomed the signing of agreements in the energy sector with India during Prime Minister Pushpa Kamal Dahal 'Prachanda's' visit, saying they are of "high significance" for the country's economic prosperity.

Nepal Prime Minister 'Prachanda' visited India from May 31 to June 3, his first official trip abroad since assuming office in December 2022.

During Prachanda's meeting with Prime Minister Narendra Modi on Thursday, the two countries signed seven agreements and launched six projects including new railway services.

"During the visit of the prime minister of Nepal to India both the prime ministers signed a number of energy-related deals such as laying down of foundation of Butawal-Gorakhpur 400 KV transmission line, signing of an MoU relating to 480 MW Fukot-Karnali Hydropower development project and hydropower agreement for the development of Lower Arun with 669 MW capacity. They are of high significance for Nepal's economic prosperity, said the Independent Power Producers' Association of Nepal (IPPAN).

Both prime ministers expressed commitment to exporting 10,000 MW of power from Nepal to India and the secretary-level agreement reached for the Power Trading deal also holds equal significance, the IPPAN said in a statement.

It also thanked Prime Minister Prachanda for taking important steps towards promoting power trade between Nepal and India.

The visit of Prime Minister Prachanda to India created a positive atmosphere for inviting investment in the energy sector, said the umbrella organisation of the private power developers.

The IPPAN urged the Nepal government to take necessary steps for creating a conducive atmosphere within the country so that Nepal's power producers can freely interact and sell energy to foreign buyers.

Prime Minister Prachanda said on Saturday that his meeting with his Indian counterpart Modi was the most significant aspect of his four-day visit to India.

We discussed matters relating to further deepening the centuries-old close relations existing between Nepal and India in the days ahead, Prachanda said upon his arrival at Tribhuvan International Airport here.

The bilateral meeting with Prime Minister Modi at the Hyderabad House was the most significant aspect of the visit and the ties between the two countries have entered a new phase, he said.