Kathmandu: Nepal and India are gearing up to sign a significant agreement on power trade, with the Ministry of Energy, Water Resources, and Irrigation confirming that the previous deal for Nepal to export 10,000 MW of electricity to India over the next 10 years will be formalized through this agreement.

Ministry Spokesperson and Joint Secretary Navin Raj Singh stated that the bilateral agreement would be signed by Ministry Secretary Gopal Sigdel and his Indian counterpart Pankaj Agrawal during a scheduled program on Thursday.

Simultaneously, officials have announced the inauguration of three crucial transmission lines as part of the agreement.

This agreement stems from discussions during Prime Minister Pushpa Kamal Dahal 'Prachanda's' visit to India in May, where Indian Prime Minister Narendra Modi pledged long-term imports of electricity from Nepal. The Indian Cabinet had earlier approved the power import agreement.

The memorandum of understanding will be signed by the secretaries of both countries during the Nepal visit of India's Minister of External Affairs, S Jaishankar. This step aims to open avenues for various government and private companies to engage in electricity trade by signing power purchase agreements in short, mid, and long-term formats.

During the visit, a joint secretary-level meeting between Nepal and India, as part of the discussions, decided to enhance the capacity of the Dhalkebar-Mujaffapur 400-KV interstate transmission line. The meeting also focused on expediting the construction of the new Butwal-Gorakhpur interstate transmission line, constructing two additional interstate transmission lines, and intensifying mega projects in the energy sector.