New Delhi: The Indian Cabinet has officially approved a memorandum of understanding for a substantial electricity trade with Nepal, marking a significant milestone in regional energy cooperation. Under this agreement, India is set to import a total of 10,000 megawatts of electricity from Nepal over the course of the next decade.

The decision to approve this long-term electricity trade was reached following bilateral discussions between India and Nepal during the visit of Nepalese Prime Minister Pushpa Kamal Dahal Prachanda to India in May of last year. While the agreement was finalized during Prachanda's visit, it only received the formal approval of the Indian Cabinet last week.

This landmark decision is poised to be a transformative moment in Nepal's economic development. Nepal's Prime Minister’s Office expressed its satisfaction with India's commitment to purchase 10,000 megawatts of electricity over the next ten years.

The approved agreement, now formalized by the Indian Cabinet, reflects the mutual commitment of both nations to bolster regional cooperation in the energy sector. During Prachanda's visit, Indian Prime Minister Narendra Modi publicly announced India's intention to import 10,000 megawatts of electricity from Nepal over the coming decade.

Nepali Ambassador to India, Shankar Prasad Sharma, shared this update through social media. However, the official Cabinet decision has yet to be published on the website of the Press Information Bureau.

This momentous agreement underscores the growing collaboration between India and Nepal and is expected to play a pivotal role in addressing energy needs while fostering economic growth in the region.