Indo-Nepal 25 year long-term PPA to be signed this week

Kathmandu: Nepal and India are set to sign a long-term Power Purchase Agreement (PPA) this week. The PPA will be signed during the Joint Commission (JC) meeting between the two countries, which is scheduled to be held in Kathmandu.

N.P. Saud, the Foreign Minister of Nepal, and his Indian counterpart, S. Jaishankar, will chair the meeting. Gopal Prasad Sigdel, the Secretary of the Energy, Water Resources, and Irrigation Ministry, has said that they are preparing to sign the long-term  PPA.

"Discussions are ongoing regarding power trade between India and Nepal," he said, "This long-term PPA will further facilitate the cross border power trade for Nepal."

In September of the previous year, the Indian Cabinet decided to purchase 10,000 MW of electricity over the next decade. In line with this decision, India has expressed interest in entering into a long-term power trade to procure electricity generated from both Nepali and Indian hydroelectric projects.

The Energy Secretary, Sigdel, and his Indian counterpart, Pankaj Agrawal, will sign the agreement. During the two-day visit of Indian External Minister Jaishankar, the meeting will discuss the modalities of purchasing 10,000 MW of electricity over the next 10 years from Nepal.

Additionally, other agendas, including air connectivity issues, digital payments, and the inauguration of development projects funded by India, are scheduled for discussion.

The meeting, chaired by Saud and Jaishankar, will address various issues related to bilateral relations. Jaishankar also has a scheduled meeting with Prime Minister Pushpa Kamal Dahal.