India to help Nepal set up power trading entity
Nov 18, 2008 - Asia Pulse Data
India has entered into an agreement
with Nepal to help it set up a power trading entity,
which the Himalayan nation has asked for to be able
to export power, on the lines of Power Trading Corporation
"An agreement has been reached....India
will have a 30 per cent equity stake while the rest
will be owned by Nepal," Minister of state for Power
Jairam Ramesh told PTI here.
Ramesh and Nepalese Water Resources
and Power Minister Bishnu Paudel had met here last
week to discuss various issues of mutual interest.
"The Nepalese minister told me that
his government wants to end the monopoly of Nepal
Electricity Authority by setting up a Nepal Electricity
Regulatory Commission under a new law.... It is
what we did here by enacting the Electricity Act
of 2003," he said.
Ramesh said by setting up an electricity
regulator, Nepal wants to introduce competition
in the power sector and boost the confidence of
With Nepal set to become a power exporting
country by 2013, India has decided to convert power
transmission lines between the two countries from
the present 66 KW and 132 KW to 400 KV.
"While today Nepal is buying power
from India, by 2013, it would be India which would
purchase electricity from Nepal," said Ramesh, adding
that the transmission line improvement project will
be implemented in the next two years at a cost of
Rs 200 crore.
The new 400 KW transmission line would
be set up between Muzzafarpur in Bihar to Dherkabar
in Nepal covering a distance of 160 KM. India and
Nepal also reviewed the progress of the 750 MW West
Seti hydro electric project, which is in advanced
stage of planning.
As part of the project, India will
buy the entire 750 MW of power. The project is being
promoted by an Australian company and the Asian
Development Bank has expressed desire to fund the
loan component, Ramesh explained.
PTC India Ltd (PTC), a leading provider
of power trading solutions in India, is a government
of India initiated Public-Private Partnership, whose
primary focus is to develop a commercially vibrant
power market in the country.
Nepal Electricity Authority (NEA)
was created on August 16, 1985, under the Nepal
Electricity Authority Act of 1984, through the merger
of the Department of Electricity of Ministry of
Water Resources, Nepal Electricity Corporation and
related Development Boards.