Special Correspondent

Power Trading Corporation to pick up 30 % in Nepal's transmission company

The Himalayan country to get 60 MW more from India Progress of Muzzafarpur-Dhelkabar link reviewed

NEW DELH: India and Nepal on Thursday agreed to give a major thrust to partnership and cooperation in the power sector by taking up execution of major hydro power projects, transmission lines and export of power to Nepal to tide over shortage. The Indian side has also agreed to allow Power Trading Corporation to pick up 30 per cent stake in the newly formed Power Trading Corporation of Nepal. The balance would be held by the Nepal Government and investors including private parties. This was decided at a bilateral meeting between Minister of State for Power and Commerce Jairam Ramesh and visiting Nepalese Minister for Water Resources Bishnu Poudel.

Mr. Jairam urged Mr. Poudel to expedite the formalities for the 750-MW West Seti project to facilitate funding by the Asian Development Bank, which is keen to pick up a stake.

The project is being developed by Snowy Mountain of Australia and the EPC contract has been given to a Chinese company. The Minister said PTC and the Nepal Electricity Authority had signed an MoU to export 60 MW from India to Nepal to help Nepal tide over shortage of electricity. India is now exporting around 50-60 MW. The additional export will start from December. The two sides also reviewed the progress of the 400 kV Muzzafarpur-Dhelkabar link that is being implemented by ILFS and the Nepal Electricity Authority. It is a 170-km link and will cost around Rs. 200 crore and will be essential for exporting power from Nepal to India by 2012-13. On his part, Mr. Poudel urged Mr. Jairam to impress upon Satluj Jal Vidyut Nigam Limited (SJVNL) to move faster in implementation of the 402-MW Arun-III project.

Mr. Poudel said a new Electricity Act would soon be passed by Nepal to set up an independent electricity regulatory commission, to encourage competition to the Nepal Electricity Authority and to instil confidence in foreign and private investors.

Source: The Hindu