The Independent Power Producers Association, Nepal (IPPAN) held a discussion with former Indian Ambassador to Nepal Ranjit Rae, urging him to facilitate electricity trade in the Indian market.

During a programme jointly organized by the ASEAN Institute of Diplomacy and International Affairs (AIDIA) and IPPAN on Sunday, office bearers of IPPAN discussed various issues of Nepal-India electricity trade with former ambassador Rae and apprised him about the problems faced by the private sector hydropower promoters of Nepal due to the electricity trade guidelines and guidelines introduced by the Government of India.

In response, former ambassador Rae said that since many issues of Nepal and India are related to geopolitics, it is not possible to ignore those issues.

He also made it clear that the power trade guidelines are not something that cannot be changed.

Speaking at the discussion, IPPAN President Ganesh Karki said that Nepal has prepared a roadmap to produce 25,000 megawatts of electricity within the next 10 years after Indian Prime Minister, Narendra Modi, announced to import 10,000 megawatts of electricity from Nepal in 10 years.

Shailendra Guragai, the former president of IPPAN, said that the private sector of Nepal had established the Nepex company with the aim of trading electricity with India. He compared Nepex with the PTC of the India and stressed the need for diplomatic initiatives to create an environment where the private sector of Nepal can trade electricity with India’s private sector.

Uttam Lama, the vice president of IPPAN, said that if India enters into a long-term PPA of 25 years to purchase electricity from Nepal, the country’s energy sector will attract more investments and the morale of 500,000 investors in the stock market will also increase.

Former ambassador Rae said that no project can be taken forward if it is not beneficial to both the countries.

Speaking about Pancheshwar Multipurpose Project, former ambassador Rae said that the construction of this project would cause more damage to India than to Nepal, and there is a situation where many settlements will have to be relocated.

Although there is no doubt that both the countries will equally share the electricity from the project at the rate of 50 percent each, the Indian side will get some more benefit in irrigation as there is no arable land in the Nepalese territory, said Rae. He said that Nepal should proceed by taking any other benefits.

Mithun Paudel, a member of IPPAN, said that if India builds a cross-border transmission line between Nepal and India in mountainous areas, it will be easier for Nepal's electricity to be exported to India. In response, former Ambassador Rae said that this matter is positive and requested to bring such a proposal from the Nepalese government.