India’s Cabinet has approved a proposal to buy 10,000 megawatts of electricity from Nepal in 10 years.

Shankar Sharma, the Nepali Ambassador to India informed that the recently held meeting of the Indian Council of Ministers has approved the proposal. With the decision of the Indian Council of Ministers, there is now more study and homework on bringing electricity from Nepal,”

The Prime Minister’s Office of Nepal has expressed happiness over India’s decision. The Prime Minister’s Office has said that it has received information that a proposal to purchase 10,000 MW of electricity in 10 years has been passed in the Cabinet meeting of India. This decision of India will prove to be a milestone in the economic development of Nepal.

Nepal’s Energy Minister Shakti Basnet has said that during the visit of Prime Minister Pushpa Kamal Dahal Prachanda to India, a long-term power trade agreement was signed between the two countries. In this agreement, India had agreed to Nepal’s proposal to purchase 10,000 MW of electricity in 10 years.

Addressing the 38th anniversary of the Nepal Electricity Authority, Prachanda said that Nepal is bringing changes in the hydropower sector, creating a favorable environment to attract foreign investment.

He said, “Our country is preparing and waiting with keen interest for major economic transformation in the coming decade through rapid development of hydropower and its maximum internal consumption.”

Prachanda also mentioned that during his recent visit to India, he had discussed clean energy with Indian Prime Minister Narendra Modi.

“The understanding reached during my meeting with Prime Minister Narendra Modi in India is a milestone towards achieving long-term power trade for access to the international market for our surplus power,” he said.

In Nepal, the domestic demand for electricity increases in winter, while the supply decreases, and in summer, the demand decreases while the supply increases. Most of the hydropower projects operating in Nepal are based on run-of-the-river. Last year, Nepal earned around 12 billion rupees from exporting electricity to India.