KATHMANDU, July 8: Nepal has refused a proposal to increase price of electricity imported from India by 20 percent.

India had tabled the proposal during a meeting of Nepal-India Power Exchange Committee (PEC) meeting held in New Delhi on Thursday and Friday. Officials of Nepal Electricity Authority (NEA) told Republica that the proposal tabled by India’s North Bihar Power Distribution Company. 

“We have informed officials of the Indian company that Nepal won’t accept price hike proposal as the imported electricity is already expensive, Kulman Ghising, managing director of NEA, told Republica.

Officials of North Bihar Power Distribution Company had argued in the meeting that price of electricity exported to Nepal is cheaper than the consumer price in India.

Nepal and India has fixed price of energy imported via 132 KVA and 33 KVA transmission lines at IRs 5.55 per unit (NRs 8.88) and IRs 6 per unit (NRs 9.6), respectively. The Nepali side wants to keep the tariff unchanged.

The fifth Joint Steering Committee meeting led by energy secretaries of Nepal and India also decided that Nepal will build Butwal Gorakhpur 400 KVA transmission line in Nepal’s territory on its own, while the transmission line in Indian territory will be constructed in government to government model. 

The transmission line, which is expected to be completed within four years, will be used to export Nepal’s electricity to India.

 
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