Kathmandu: After years-long efforts made by the Government of Nepal, the doors have now been opened to sell electricity produced in Nepal to the Indian market. Earlier, India used to take only the surplus electricity from Nepal. Now, electricity generated in Nepal has been allowed to be sold at competitive rates in the Indian market.

With the consent of the Ministry of Power of India, the body that approves inter-country electricity trade on Monday gave permission to the Nepal Electricity Authority (NEA) to trade electricity in the Indian energy market.

Nepal has already received permission to purchase and import electricity from the Indian Energy Exchange (IEX). NEA has been importing electricity at competitive rates through IEX since April 30 whenever it was needed.

With the permission to export, electricity trade between Nepal and India has entered a new phase. In a news bulletin issued by the Nepal Electricity Authority (NEA) on Tuesday, permission has been granted to sell 39 MW of electricity generated by the 24 MW Trishuli and 15-MW Devighat power houses in the first phase at the Indian Energy Exchange (IEX).

NEA has started exporting electricity through the 400 kV Dhalkebar-Muzaffarpur inter-country transmission line from Tuesday midnight. Earlier, electricity was only being imported from this line.

Minister for Energy, Water Resources and Irrigation Pampha Bhusal has claimed that Nepal has become the first country in South Asia to enter the Indian energy exchange market for buying and selling electricity. “We have got permission for the sale of electricity through continuous efforts at the political, diplomatic and administrative levels. This is a milestone for energy trade between the two countries,” she said.

NEA Executive Director Kulman Ghising said that bricks have been added to the Nepal-India relationship after the agreement was reached with the Indian side for the export of electricity.

Nepal will sell electricity in the day ahead market under India's central electricity system. NEA will compete in the bid every day from 10 AM to 12 noon with the quantity of electricity sold in the exchange market.