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5th January 2024 (8 Topics)

India-Nepal signed power pact and energy MOU

Context

Nepal signed a long-term agreement for the export of 10,000 MW power to India in the next 10 years and an MoU for cooperation in renewable energy.

About

About the pact -

  • India and Nepal reached a significant milestone in their bilateral relations by signing a ground-breaking power pact and a Memorandum of Understanding (MoU) in renewable energy.
  • The agreement, signed during the 7th meeting of the Nepal-India Joint Commission, outlines a plan for Nepal to export 10,000 MW of power to India over the next decade. Simultaneously, an MoU for collaboration in renewable energy was inked between the Nepal Electricity Authority and India's National Thermal Power Corporation Limited.

Deeper and multi-level cooperation

  • This strategic move not only reinforces economic ties but also signifies a deeper level of cooperation in crucial sectors.
  • The bilateral discussions between the countries covered various aspects, including trade, economic relations, connectivity projects, defense, security, agriculture, energy, power, water resources, disaster management, tourism, civil aviation, people-to-people exchanges, and cultural partnerships.
  • The virtual inauguration of three cross-border transmission lines—132 kV Raxaul-Parwanipur, 132 kV Kushaha-Kataiya, and New Nautanwa-Mainahiya—underscores the collaborative efforts between India and Nepal in enhancing connectivity and infrastructure.

Optimism and Vibrant relations

  • India's External Affairs Minister expressed optimism about the multifaceted engagement, highlighting the positive impact on overall bilateral ties.
  • The sentiment was echoed by Nepal's Prime Minister, who hailed the power agreement as a major breakthrough in Nepal's power sector.
  • The main contours of India-Nepal bilateral relations include a comprehensive approach encompassing trade, economic cooperation, and shared development goals.
  • This recent agreement not only addresses energy needs but also serves as a testament to the enduring friendship and mutual benefit between the two nations.

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