Nepal, India forge power partnership at Vibrant Gujarat Global Summit
Jan 10, 2024
Gandhinagar (Gujarat) [India], January 10 : In a groundbreaking announcement on the inauguration day of the Vibrant Gujarat Global Summit on Wednesday, Nepal's Finance Minister Prakash Sharan Mahat declared a historic long-term power purchase agreement between Nepal and India.
The agreement entails the export of 10,000 megawatts (MW) of electricity to India over the next decade, marking a significant milestone in the energy cooperation between the two neighbouring nations.
Mahat said, "Nepal and India have signed a long-term power purchase agreement to export 10,000 MW of electricity to India over ten years of time. This will immensely open up investment opportunities in hydropower in Nepal. It will also contribute to achieving the green energy transition target, not only for Nepal but also in India".
He added, "Situated between two global economic powers, Nepal has adopted liberal, market-oriented economic policy since the early nineties and is a member of several international organisations and multilateral agencies, and we are implementing trade and investment policies and regulating international standards."
Minister Mahat expressed optimism about the profound impact of this agreement on Nepal's hydropower sector, presenting a substantial investment opportunity.
He highlighted the collaborative effort's potential to contribute not only to Nepal's green energy transition but also to India's sustainable energy goals.
The signing of this agreement positions Nepal as a key player in the regional energy landscape.
The power purchase agreement is poised to strengthen the economic ties between Nepal and India, fostering collaboration in the crucial energy sector.
This move not only enhances Nepal's economic potential but also reinforces the region's collective efforts towards sustainable and green energy practices.
As the Vibrant Gujarat Global Summit unfolds, the power agreement stands out as a testament to the nations' commitment to regional cooperation, economic growth, and sustainable development.
The anticipated influx of investments into Nepal's hydropower sector is expected to catalyse positive economic outcomes for both nations in the years to come.
