The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval for the India-Nepal Agreement on Electric Power Trade, Cross-Border Transmission Interconnection and Grid Connectivity.
Nepal currently imports about 200 Mega Watts electricity from India annually.
New cross-border transmission lines are under construction, which will more than double the transmission capacity over the next two years. The agreement will also provide a framework for imports, by Indian entities, of surplus power generated from future hydroelectric plants in Nepal, on mutually acceptable terms and conditions.
The document was initialized earlier this month in accordance with the understanding reached by the two countries during the Prime Minister's visit to Nepal in August this year.
