While preparing the agreement with China, India brought the procedure of not buying electricity
While preparing the agreement with China, India brought the procedure of not buying electricity
While Nepal is preparing to sign an agreement with China on investment in electricity, a decision taken by India is likely to affect the agreement. The Government of India has passed a procedure not to purchase electricity generated from power projects prepared with the investment of the Chinese government.
The cross-border inland electricity import-export procedure approved by the Central Electricity Authority (CEA) under India's Ministry of Power did not name China, but said, "India has no bilateral agreement with India and will not buy electricity from its investment."
From this point of view, there is no bilateral agreement between India and China on electricity. But many hydropower projects are under construction in Nepal with Chinese investment and other agreements are being prepared. Nepal is about to sign an agreement for the construction of various hydropower projects of about 800 MW with Chinese investment. The Nepal Electricity Authority (NEA) is ready for an agreement for some of the MW. But the agreement has been delayed due to the political situation.
India had stated in its cross-border electricity trade directive issued four years ago that it would not buy electricity invested by third countries. Only electricity generated with Indian investment was to be procured. But after Nepal opposed it, it was corrected. Now again, in the procedure made by India, it has been mentioned that ‘there is no bilateral agreement on electricity with India and the country will not buy electricity generated from its investment’. Based on this procedure, India will not buy electricity generated from China's investment in Nepal's electricity.
However, Nepal has opened the way to purchase electricity generated with its own investment or with the investment of any other country that has an agreement with India. The government of Nepal has made a policy to sell the surplus electricity in Nepal to outside countries. India is the most important market for Nepal to sell electricity.
While Nepal is preparing to sign an agreement with China on investment in electricity, a decision taken by India is likely to affect the agreement. The Government of India has passed a procedure not to purchase electricity generated from power projects prepared with the investment of the Chinese government.
The cross-border inland electricity import-export procedure approved by the Central Electricity Authority (CEA) under India's Ministry of Power did not name China, but said, "India has no bilateral agreement with India and will not buy electricity from its investment."
From this point of view, there is no bilateral agreement between India and China on electricity. But many hydropower projects are under construction in Nepal with Chinese investment and other agreements are being prepared. Nepal is about to sign an agreement for the construction of various hydropower projects of about 800 MW with Chinese investment. The Nepal Electricity Authority (NEA) is ready for an agreement for some of the MW. But the agreement has been delayed due to the political situation.
India had stated in its cross-border electricity trade directive issued four years ago that it would not buy electricity invested by third countries. Only electricity generated with Indian investment was to be procured. But after Nepal opposed it, it was corrected. Now again, in the procedure made by India, it has been mentioned that ‘there is no bilateral agreement on electricity with India and the country will not buy electricity generated from its investment’. Based on this procedure, India will not buy electricity generated from China's investment in Nepal's electricity.
However, Nepal has opened the way to purchase electricity generated with its own investment or with the investment of any other country that has an agreement with India. The government of Nepal has made a policy to sell the surplus electricity in Nepal to outside countries. India is the most important market for Nepal to sell electricity.
