In a move benefiting from power sharing mechanism, Indian and Nepali energy department officials are holding a meeting in New Delhi.
The meeting held recently includes discussions on tariffs pertaining to electricity imports from India, power banking and modality of cross-border power transmission line, among others between the two countries.
While Nepal is currently purchasing 400 megawatt of electricity from India every day and more in the dry season, India had proposed 20 percent rise in tariff rate of power supplied to Nepal, which Nepal disagreed.
The meeting is expected to witness discussions on the new Butwal-Gorakhpur International Transmission Line.
Power banking is going to be one key aspect during the meeting, in case of which, Nepal proposes to sell its excess electricity during the monsoon season to India and will buy in exchange from India during the dry season.
Power banking refers to the exchange of power as cash. Under this mechanism, one country exports electricity to the other when it has a surplus and imports back the same amount in case of its deficit.
Outcomes of the meeting will further be discussed at the energy secretary-level meet to be held next month in Pokhara, Nepal.
This meeting is coming after an energy secretary-level joint steering committee in April 2018, which authorized Nepal Electricity Authority (NEA) and the Central Electricity Authority (CEA) to make necessary suggestions to the committee on implementation and funding modalities.