India purchased electricity worth Rs 11.80 billion from the Nepal Electricity Authority (NEA) in the last five months; from mid-May to mid-October. The NEA has been selling surplus electricity in the rainy season to India.
In the first three months of the current fiscal year (from mid-July to mid-October), NEA exported electricity worth Rs 9.645 billion to India. Last month alone (mid-September to mid-October), NEA sold electricity worth Rs 4.235 billion in the Indian market. The average rate of electricity exported to India in three months was Rs 10.27 per unit.
Similarly, electricity worth Rs 405 million were exported in five days of May and Rs 1.75 billion in June to India. The average selling price of electricity exported to India in May and June was Rs 9.67 per unit.
The NEA has been selling 522 megawatts of electricity through competition in the day-ahead market of IEX and about 110 megawatts of electricity to the Indian company NTPC Vidyut Vyapar Nigam Limited (NVVN) as per the power agreement between Nepal and India. NVVN is selling the electricity purchased from NEA in the state of Haryana. Kulman Ghising, executive director of NEA, said that it is possible to export electricity worth Rs 16 billion this year.
“We have submitted a proposal to the Central Electricity Authority of India seeking for permission to export about 100 megawatts of electricity, but as we did not get the approval, we sent the proposal again some time ago,” said Ghising, adding, “NEA received approval for the export of 522 MW of electricity in the competitive market and 110 MW to NVVN. Out of this, 562 MW of electricity is being exported from Dhalkebar-Muzaffarpur 400 KV international transmission line and 70 MW from Mahendranagar-Tanakpur 132 KV transmission line.