In order to attract more investment on the energy sector, the government must simplify the existing licensing process, environment impact assessment and pricing of energy

The state-owned Nepal Electricity Authority (NEA) is importing 80MW of electricity from India till June end. An agreement to this effect was reached between NEA and the Indian government-owned Nodal Agency of Vidhyut Vyapar Nigam (NVVN) on Monday. NEA Managing Director Mukesh Raj Kafle and NVVN General Manager AK Maggu reached the deal at the rate of NRs. 5.50 per unit of electricity which, according to NEA officials, will help reduce current load-shedding by two hours. NVVN officials earlier had proposed selling electricity at around NRs. 8.40 per unit, but later they agreed to reduce the price at NEA’s request. It became possible to purchase electricity from India after the completion

of the 400 Kv transnational transmission lines which will be able to wheel energy up to 600MW in both the countries. NEA officials are expecting to receive the electricity from today. Besides the per unit cost of electricity NEA will also have to pay NRs. 1.53 per unit as wheeling charge for both the transmission lines, and it will cost NEA NRs. 7.03 per unit of electricity.

NEA and NVVN reached the power purchase agreement 14 months after the signing of the Power Trading Agreement (PTA) between the two countries during Indian PM Narenda Modi’s visit to Nepal. NEA officials have termed it a major development in exchanging power between Nepal and India which were at odds over the pricing of electricity for many years. The deal has been made just three days ahead of Prime Minister KP Sharma Oli’s official visit to India beginning February 19-23. After upgrading its transmission lines up to 220 Kv Nepal can import an additional 200MW of electricity from India and vice versa.

This is a major deal on exchanging power between the two countries. The private developers which are constructing a number of hydro power projects in the country can also sell surplus energy to India at a competitive price under PTA. It is also expected that foreign investors who were till date hesitating to invest in Nepal’s hydro sector will also be encouraged to invest in it as they will get fair price for the energy. But it is an irony that Nepal has to purchase electricity from outside though the country is rich in water resources and has a suitable topography for hydro power development. Keeping this in mind the government should encourage the private sector to invest more on the power sector so that the surplus energy can be sold to India under the PTA. In order to attract more investment on the energy sector, the government must simplify the existing licensing process, environment impact assessment and pricing of energy to be generated by the private sector. Other factors affecting the speedy development of hydro power project include NEA’s slow pace in building the transmission lines on major river corridors where a number of projects are under construction and the problem on land acquisition in the project areas. NEA has also not been able to utilize the fund provided by the World Bank Group for the construction of transmission lines. The government must clear these hurdles to attract more investment in this sector.

Well done, boys!

The national Nepali football squad has made the country proud by defeating their arch rivals India by two goals to one in the final of the 12th South Asian Games held in India on Monday. Nepal broke the jinx with striker Bimal Gharti Magar scoring for Nepal for the first time in an international match after two years in 2015. One goal each by Prakash Budathoki and emerging striker Nawayug Shrestha in the second half of the match enabled Nepal to get hold of the gold medal in football. There is no doubt that there is more talent in Nepal to be spotted and nurtured. The performance of Nepal in the Games whose team was coached by Raju Shakya, a former national player exceeded expectations.

The situation is not normal in the country and sports had taken a back seat. Still the players practiced hard and were able to come out champions in this possibly most prestigious event of the Games. From this it is clear that Nepal has many talented players able to beat the best teams of other countries in South Asia and become recognized as a soccer powerhouse particularly in this region. They deserve further incentives, encouragement and skill-development training.