India has raised the price of electricity that it exports to Nepal.
As per the new power purchase agreement by Nepal Electricity Authority (NEA) and India’s NTPC Vidyut Vyapar Nigam Ltd signed on Wednesday, electricity imported from India will become costlier by 60 paisa. India will now sell electricity to Nepal at IRs 3.6 (Rs 5.76) per unit, up from IRs 3.98 (Rs 6.36).
The new PPA Â will come into effect after the existing PPA signed by the NEA and NTPC Vidyut Vyapar Nigam Ltd in December last year expires on March 31 (Saturday). According to the new PPA, the price rate will increase by 5 percent again after six months.
NEA officials told Rpeublica that the new PPA has ensured smooth supply of 120 megawatt of electricity via Dhalkebar-Muzzafarpur cross-border transmission line for 15 months.
Nepali officials say that India raised the price of electricity exported to Nepal as the southern neighbor has also increased electricity tariff in its domestic market. â€œWe had maintained our stance during the negotiation with Indian side to supply electricity at the existing price rate. However, we have to agree on the increased tariff as they argued that they cannot must increase price rate due to rise in electricity tariff in Indian market,â€ Prabal Adhikari, chief of the Power Trade Department of NEA, told Republica.
He said that the NTPC, the nodal agency of Indian government in the business of power trading, increased the price rate, citing the rise in the cost of production of electricity in the Indian market. He said that average clearing price of electricity exchange is IRs 4.19 (Rs 6.7) per unit in India.