Nepal and India back in 1971 signed the "Power Exchange Agreement" according to which, both countries have been importing and exporting electricity on the basis of need.
Recently, Nepal also signed the Power Trade Agreement with India according to which, it is importing electricity from 220 KVA Dhalkebar-Mujarrafpur transmission line from India's NVVN (NTPC Vidhyut Vyapar Nigam). Apart from this, Nepal and India have been exchanging electricity from various transmission lines, which range over one dozen.Nepal mainly has been exporting surplus electricity to India during the monsoon season when the production soars and consumption decreases during the night. Surplus electricity is being transported to Bihar, Uttar Pradesh and Uttarakhand.
India has been paying Nepali rupee 6 rupees 18 paise to Nepal when it imports the electricity while Nepal also pays India the same amount when it imports electricity.
As per record kept by the Nepal Electricity Authority (NEA), a total of 291 Megawatt electricity is being exchanged between Nepal and India. In order to facilitate the transmission of electricity, Nepal has been using 132, 33 and 11 KVA transmission lines.
"Nepal was able to export a total of 10 crores 70 lakh Unit Electricity to India in the previous fiscal year," Prabal Adhikari, Spokesperson for NEA said.
Adhikari said Nepal would be able to export a large portion of electricity to India from next year if Upper Tamakoshi (hydroelectric project) comes into operation.
"It would be a milestone achievement for us. We will be able to export a large portion of electricity to India. We are planning to produce about 1,300 MW electricity this year only," the spokesperson for the state-owned electricity authority said.India and Nepal not only have been engaged in exchanging electricity, India also has been helping in building hydropower projects in Nepal. Arun-III, the biggest hydropower project of Nepal is being built in Indian assistance, which is expected to electrify Himalayan Nation.