First Business News Portal in English from Nepal
KATHMANDU: The government has chosen to send the electricity trading bill to parliament for final approval.
Rekha Sharma, the minister of communication and information technology, claims that the Cabinet decided on Wednesday to seek federal approval for the electricity trading bill’s implementation.
The government action follows India’s recent approval to buy electricity generated in Nepal and enable the landlocked nation to sell its electricity to Bangladesh as well.
Nepal signed a contract with its southern neighbor last week to sell 10,000 MW of electricity over the course of the following ten years during the visit of Prime Minister Puspa Kamal Dahal to India.
In addition, as part of a trilateral agreement, India permitted Nepal to sell electricity to Bangladesh using the Indian transmission network. .
In 2014, Nepal and India signed a Power Trade Agreement for the first time. However, due to a lack of corresponding laws, the Nepal Electricity Authority has been unable to sign new power purchase agreements, private sectors have not been granted permission for power trade, and the nation has not been able to expand the electricity market on a national and international level.
The Electricity Act Amendment Bill, however, has been pending in parliament for a considerable amount of time.
Existing electricity laws would be modified and integrated under the new law. It has continued to include clauses that grant private companies licenses to transact in electricity both domestically and abroad.
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