The private sector has expressed its happiness over the long-term power agreement signed between Nepal and India on Thursday. They said that the agreement raised a ray of hope among them for the investment in the hydropower projects.

President of the Independent Power Producers’ Association, Nepal Ganesh Karki said that the private sector was excited by the signing of the agreement for the long-term power trade and urged the governments of both countries for its proper implementation.

“The agreement signed for the export of at least 10,000 megawatts of electricity to India in 10 years is a very welcome step. It is historic work of the present government in the field of the hydropower sector as it has paved the way for the maximum utilisation of hydropower potential by increasing investment in this sector,” he told The Rising Nepal.

Stating that with the inking of the agreement between Nepal and, Nepal’s electricity will have easy access to India’s huge market, he said that it would encourage domestic and foreign investors to invest in Nepal’s hydropower projects. A long-term electricity trade agreement was signed between the governments of Nepal and India on Thursday.

According to the agreement, within the next 10 years, India will purchase 10,000 megawatts of electricity from Nepal. Also, the agreement has ensured an export route for electricity produced in Nepal. Karki stressed the need to create an investment environment by making amendments to the existing acts and policies to attract investment in hydropower.

“It is a must to increase investment in the hydropower sector to produce electricity to meet not only the national demand but also export it to India after the latter committed to importing at least 10,000 MW in 10 years. Bangladesh is also showing interest in purchasing power from Nepal. So, the government should address the hurdles in the process of constructing hydropower,” he said.oThe government has set a target of generating 28,000 MW of hydropower by 2035. Out of that, 13,500 MW of electricity is expected to be consumed domestically and the remaining 15,000 MW of electricity will be exported to neighbouring countries, India and Bangladesh. Currently, Nepal’s power generation capacity has reached 2,892 megawatts.

Meanwhile, president of Nepal Chamber of Commerce Rajendra Malla has said that the 1,200 MW capacity Budhigandaki Hydropower Project should be promoted immediately in a public-private partnership.

Addressing the Agriculture, Tourism and Business Promotion fair organised by the Gorkha Chamber of Commerce in Gorkha, President Malla emphasised that the construction process of Budhigandaki hydropower project should be started immediately in the public-private partnership.

He said, “There has been an agreement to export 10,000 megawatts of electricity from Nepal to India in 10 years. To implement it, it is necessary to advance the Budhigandaki Hydropower project in the public-private partnership. The private sector is ready to invest in it.” He said that the existing trade deficit could be reduced by exporting electricity.