India-Nepal Electricity Tie: A Win-Win Partnership

India-Nepal electricity ties have played a significant role in shaping the neighboring atmosphere. It is not just a business relationship but a connection of electrons that creates a win-win situation in countries prosperity. In this regard, I would like to highlight some major points on Indo-Nepal power relations and trade.

1.    I have seen that it is important for private companies in Nepal and India to join hands in making maximum use of Nepal's water resources.

2.    In order to maximize Nepal's water resources, comprehensive conservation of heritage is necessary. Most of Nepal’s 6,000 rivers, streams, and glaciers originate from the Himalayan ranges. If Nepal and India can work together for their conservation, sustainable water management can be achieved.

3.    In addition to protecting Nepal’s watersheds, it has become indispensable to prevent the mountains from melting. Nepalese and Indian hydropower investors must receive compensation due to climate change impacts, supporting the Net Zero target.

4.    The private sector in Nepal should receive the same carbon credit benefits as it does for clean energy exported to India. Nature does not recognize borders—floods and landslides in Nepal also impact India. A long-term sustainable solution is needed. With the world’s most open border, private investment and people-to-people relations between Nepal and India should become more effective and deeper than ever before.

Key Points

(a) During the visit of the Prime Minister of India, Honorable Shri Narendra Modi, to Nepal, it was announced that India would purchase 10,000 megawatts of clean, green energy. An agreement has been reached between the two countries accordingly.

(b) Recently, out of the 28,500 megawatts announced by the Nepal government, 13,000 megawatts will be exported. The Indian private sector can also participate 100% in this.

(c) How the carbon credit benefits will be distributed for the clean, green energy purchased by India is another important issue for Nepal.

(d) Nepal's water resources, particularly the approximately 6,000 rivers and streams originating from the Himalayan range, have not yet been fully utilized or protected. Proper watershed management is crucial. Could the Himalayan region of Nepal, currently under the threat of climate change, be better protected through a joint effort by the Government of India, the Nepalese government, and the private sectors of both nations?

On the other hand, thousands of tourists from Western countries compete to climb various mountains in Nepal in the name of adventure tourism. At Everest Base Camp alone, thousands of tents are pitched, contributing to pollution and accelerating the melting of Nepal’s mountain ranges. If the sacred Himalayan shrines are not protected, Nepal's clean water and clean energy will face serious threats. Both countries must work together on this.

Mr. Bhandari is a Hydropower Promoter, Green Energy Activist, and Advisor of IPPAN. This article is an edited version of his remarks expressed during the India-Nepal Energy Summit, held in New Delhi on Wednesday.