Kathmandu: Bidhyut Byapar Company, a subsidiary of Nepal Electricity Authority (NEA), has received the government’s permission to carry out cross-border trading of electricity.

A cabinet meeting held on Thursday allowed the company, which has been seeking the government’s approval for the past three years, to work on its mandated task. The government decision opens a gateway for the company to make a move to buy and sell electricity across the border, particularly with India.

Recently, Bangladesh has also expressed its interest to trade electricity via private sector companies. Nepal has been selling an average of 39 MW of electricity to India.

With a surplus of electricity production lately, the government has been prioritizing cross-border energy trade. Currently, Nepal produces around 2,000 MW of electricity while the production is expected to reach 3,300 MW by the end of the current fiscal year. Similarly, the hydroelectricity projects with a total capacity of 3,500 MW are under construction, which are expected to be completed in the next two years.

NEA Managing Director Kulman Ghising said licensing the subsidiary company will facilitate cross-border trading of electricity. “It has also put forth more prospects to start additional procedures in the line,” he said.