Nepal and India have agreed to a slight increase in electricity import rates for the coming year, following the 17th meeting of the Nepal–India Electricity Exchange Committee. The new rates mark a 1.5 per cent rise from last year.
For the current fiscal year, electricity imported through the 132 kV transmission line will cost Rs 8.22 per unit, 33 kV at Rs 8.91 per unit, and 11 kV at Rs 9.55 per unit. The rates apply to power imported from the Indian states of Bihar, Uttar Pradesh, and Uttarakhand.
The agreement comes after detailed discussions between the two sides. India had initially proposed a 5.5 per cent increase, citing rising production and supply costs. However, Nepal reviewed current market conditions and indices, concluding that a smaller increase was sufficient.
The arrangement is expected to strengthen electricity supply management, particularly during Nepal’s dry season in Chaitra and Baisakh, when domestic power demand rises. Nepal currently imports roughly 12,000 to 14,000 megawatt-hours of electricity daily, with the volume expected to increase during peak demand periods.
The electricity exchange mechanism between Nepal and India has been in operation since 1992, serving as a key foundation for regional energy cooperation. Both sides emphasised that the agreement will enhance bilateral energy collaboration, improve regional energy security, and reinforce long-term friendly relations between the two countries.
Representatives from Nepal’s Electricity Authority, the Ministry of Energy, Water Resources and Irrigation, the Ministry of Foreign Affairs, and the Indian Embassy in Kathmandu participated in the discussions. The meeting also agreed to review the electricity purchase rate structure in detail next year to ensure it continues to reflect market conditions and bilateral energy needs.