Kathmandu,28 Nov 2014: Nepal is to be benefited from the recently concluded energy agreements among the SAARC nations.
Indian companies are giving special interest to invest in the energy sector in Nepal and the Government of Nepal has also demonstrated a serious interest in this regard.
The investment board has recently held agreements on two important projects related to the energy sector with the Indian companies and with this effect long awaited the Upper Karnali andÂ the Arun III are on the process of going ahead.
Each project has the capacity of generating 900 megawatt power and the country would be notably benefited with the completion of these projects.
As per the agreements, Nepal will get 306 megawatt power in free of cost and this comes to be about 50 per cent of a total power that is available in the central grid.
It has been agreed that Nepal will get free shares of the Upper Karnali and Arun-III Hydroelectricity projects. The Arun III Hydroelectricity Project is going to provide shares worth Rs 1 billion to locals while Nepal will only get 27 per cent share of the Upper Karnali.
Similarly, the government is in preparation to invest Rs 100 billion, provided by India, on the most awaited projectâ€”Budhigandaki Hydropower Project.
The projects would also help Nepal to reduce the increasing trade deficit with India. India has been providing electricity to another SAARC member countriesâ€”Bangladesh, and has been purchasing power from Bhutan.
Nepal and India have signed the Power Trade Agreement (PTA) few months ago. The agreement has opened door to sell the electricity produced in Nepal to Bangladesh.
Works regarding the construction of Dhalkebar-Muzaffarpur Transmission Line are going in a speedy manner. Some 1,400 MW of power can be exported and imported through the transmission line. Similarly, construction works of other transmission lines are in final stage from where Nepal can get maximum benefit.