Report by Drishti Baheti
The Prime Minister of Nepal, Shri Pushpa Kamal Dahal Prachanda, recently paid a visit to India for improving regional cooperation. This visit marks an important milestone in the relationship between the two neighboring nations. This was a 4-day visit – from 31st May to 3rd June.
This was PM Dahal’s 4th visit to India. During the visit, both Prime Ministers discussed steps to strengthen the ties between India and Nepal. The two Prime Ministers have signed many agreements that include new rail links to increase physical connectivity and a long-term deal for electricity supply.
The 900 megawatts Arun III project, developed by a subsidiary of Sutlej Jal Vidyut Nigam (SJVN), has been growing at a fast rate. India has also come to Nepal’s aid by signing an agreement between Nepal and India’s National Hydro Electric Power Corporation Private Limited (NHPC Ltd) to develop the 750 megawatts West Seti project, a project that was stranded by a Chinese company citing financial unviability. The 900-megawatt Upper Karnali Project has also been taken up by GMR, an Indian infrastructure and construction company.
Nepal had begun providing electricity to India in the past week as the surplus of power in Nepal is normally achieved with the onset of the monsoon in the country. Since Saturday last week, Nepal has been exporting around 600 megawatts of electricity to India.
Between June and December 2022 alone, Nepal earned NPR (Nepali Rupee) 11 billion by exporting hydel power to India. Nepal has also proposed a 25-year bilateral agreement for power trade, that will replace the current annual renewal system which brought inefficiency and uncertainty in trade prospects.
India is Nepal’s largest foreign trade partner (this means that Nepal exports more to India than to any other country in the world), and also Nepal’s foremost foreign investor (this means that India invests in infrastructure and civil projects in Nepal).
Seven agreements were signed during this visit.