Er.energyNP@Gmail.com

The Supreme Court has issued a directive order instructing the government to send the “Long Term Power Trade Agreement–2024” signed between Nepal and India to both houses of the Federal Parliament for information purposes. Releasing the full text of the verdict one and a half years after dismissing the writ petition against the agreement, the Court ruled that the agreement does not require ratification by Parliament under Article 279 of the Constitution. However, the Court stated that the agreement must be forwarded to both houses for their information. With this ruling, the way has been cleared to move forward with the long-term electricity trade plan with India.

A constitutional bench comprising then Chief Justice Prakash Man Singh Raut and Justices Sapana Pradhan Malla and Mahesh Sharma Paudel stated in the verdict that the agreement is not of a nature that requires parliamentary ratification, contrary to the petitioner’s demand. The Court’s directive order states:

“As Section 10 of the Nepal Treaty Act, 2047 requires treaties accepted by the Government of Nepal under Section 6 of the Act to be presented before the legislature, the present agreement shall be sent to both houses of Parliament within 30 days for information purposes.”

The Court concluded that the agreement complies with Nepal’s Constitution, prevailing laws, and international treaties and practices. The petitioners had argued that the long-term electricity trade agreement would affect Nepal’s energy sovereignty, natural resources, and national interest, and had sought a halt to its implementation. However, the Court held that the agreement could not be deemed unconstitutional because it aims to institutionalize the export of electricity generated in Nepal, the expansion of transmission infrastructure, and bilateral energy cooperation.

The agreement sets a long-term target of exporting up to 10,000 megawatts of electricity from Nepal to India.

The Supreme Court also ordered, under Section 12 of the Nepal Treaty Act, 2047, that the bilateral agreement be published in the Nepal Gazette. It further directed the government to implement the agreement in a manner that does not harm national interests, particularly regarding grid connectivity and the expansion of transmission infrastructure for electricity trade. The Court also ordered that electricity exports must not reduce domestic consumption or create adverse impacts within Nepal.

The order further states that if additional agreements are required during implementation - including on issues such as water resource sharing or utilization - they must ensure Nepal’s national interests are protected and prevent any monopoly by another country.