Kathmandu: Nepal and India have officially signed a long-term agreement on electricity, marking a significant milestone. The secretaries of both nations endorsed the document in the presence of Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet.

This agreement solidifies the bilateral understanding reached during Prime Minister Pushpa Kamal Dahal's visit to India from May 31 to June 3, 2023, wherein both countries agreed to export 10,000 megawatts of electricity from Nepal to India over the next decade. Gopal Sigdel, Secretary at the Ministry of Energy, Water Resources, and Irrigation, and India's Energy Secretary Pankaj Agrawal signed the agreement on behalf of their respective nations.

The Federal Council of Ministers of India had previously approved the Memorandum of Understanding (MoU) related to this agreement. The signing took place during the two-day visit of India's External Affairs Minister, Dr. Subrahmanyam Jaishankar, which commenced today.

Following this agreement, various government and private entities in India will engage in power trade with Nepal through short-term, medium-term, and long-term contracts. Nepali private sectors can also participate in electricity import and export after completing necessary procedures.

In a joint press conference during Prime Minister Dahal's visit to India, the leaders emphasized the historic and significant nature of the power export issue. The government has already formulated an energy development strategy aiming to produce 28,000 MW of electricity in the next 12 years, with a target to export 15,000 MW to different countries, including India.

The private sector in Nepal has welcomed the agreement, anticipating significant development opportunities in the country's energy sector. The government's goal is to bring about a qualitative transformation in the energy sector, collaborating closely with the private sector.

During the visit, an Indian delegation led by Energy Secretary Agrawal paid a courtesy call on Energy Minister Basnet. Minister Basnet expressed satisfaction over the meaningful cooperation in the energy sector, emphasizing the need to further strengthen this collaboration. He highlighted that the agreement to export 10,000 MW of electricity over the next decade would elevate the relations between the two countries. The Energy Minister urged the acceleration of ongoing projects, expecting Indian investments in large-scale projects.