Nepal, India agree on expansion of power cooperation
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Looking at the opportunities for expanding and further strengthening mutually beneficial bilateral cooperation in the power sector, both leaders 'have agreed on joint development of power generation projects in Nepal, second, development of cross-border transmission infrastructure'
During his official three-day visit to India, Nepal Prime Minister Sher Bahadur Deuba on Saturday held bilateral talks with his Indian counterpart, Narendra Modi, in New Delhi.
Issuing the India-Nepal joint vision statement on power sector cooperation, the Indian foreign ministry said both prime ministers noted the positive developments in each other's power sectors.
While India congratulated Nepal on its significant progress in the power sector including becoming a near power surplus country, Nepal's PM appreciated India's recent cross-border electricity trade regulations that have enabled key partners like Nepal to access India's market and trade power with India.
Looking at the opportunities for expanding and further strengthening mutually beneficial bilateral cooperation in the power sector, both leaders “have agreed on joint development of power generation projects in Nepal, second, development of cross-border transmission infrastructure”.
In addition, both prime ministers have also agreed on bi-directional power trade with appropriate access to electricity markets in both countries based on mutual benefits, market demand, and applicable domestic regulations of each country.
Also, an agreement has been reached to develop a coordinated operation of the national grids and institutional cooperation in sharing the latest operational information, technology, and know-how.
Held fruitful discussions with PM @SherBDeuba, who has always played a key role in boosting the India-Nepal friendship. We took stock of the full range of bilateral relations including important development projects that will deepen economic as well as cultural linkages. pic.twitter.com/CXIYQ9fbm3
— Narendra Modi (@narendramodi) April 2, 2022
Both the Prime Ministers have agreed to expand such cooperation to include their partner countries under the BBIN framework subject to mutually agreed terms and conditions between all involved parties
Based on their respective national policies and climate-change commitments, India and Nepal have agreed “to make renewable energy production, hydropower in particular, a cornerstone of their energy partnership”.
“That Indian investment into Nepal's renewable power sector, in particular the Hydropower sector, has the potential to benefit both the countries by strengthening their economies generating employment, enhancing export earnings and contributing to further development of industrial and financial capacities, and mutually agreed to share of other benefits,” MEA said in the statement on agreements between both leaders.
During the occasion, Nepal also invited Indian companies to invest in the development, construction, and operation of viable renewable power projects, including in the Hydropower sector in Nepal, including storage-type projects, through mutually beneficial partnerships.
Both Prime Ministers agreed to prioritize expeditious movement on projects and initiatives on the basis of this joint vision. They agreed to continue supporting each other's national growth and prosperity guided by mutual respect and equality.
Apart from this, India and Nepal have launched four projects and four documents were exchanged including two MoUs signed between India Oil Corporation and Nepal Oil Corporation.
