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India says no power at concession

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KATHMANDU, Nov 10: Power Grid Corporation of India Limited (PGCIL) has said that it is “unable to fulfill” the Nepal government´s request for importing an additional 90 MW from India at a concessional rate for the upcoming dry season. The government was hoping to get the power supply from India by December to fight loadshedding this winter. [break]



Nepal Electricity Authority (NEA) is now negotiating a commercial rate (IRs 6 per unit) with PGCIL through the Power Trade Corporation (PTC) of India Limited. PTC is a Government of India initiated Public-Private Partnership JV and PGCIL is a public utility company.



India has, however, already agreed to supply 20 MW of the total demanded by Nepal at IRs 6 per unit, to be supplied from the Tanakpur point. Also, NEA has put in place an agreement to bring 20 MW from West Bengal through Bihar to Dang district.



Besides the 20 MW, Nepal had sought 30 MW from the Gandak side, another 30 MW via the Kataiya-Biratnagar line and 10 MW from the Birgunj point.



“India is willing to give power but not at commercial rates as per our demand,” Dr Prakash Sharan Mahat, Minister for Energy, told myrepublica.com.



Nepal had sought some 100 MW of additional power from India at a concessional price during Prime Minister Madhav Kumar Nepal´s visit there in August, and the Indian government had given a positive signal.



“It is now clear that we cannot bring any additional power at cheaper cost as the price in India too has gone up significantly,” an NEA official said, adding, “Even the amount of IRs 6 will go higher since wheeling cost and other additional payments in India will have to be borne by NEA.”



Asked to comment, the Indian embassy said that PGCIL has approved supply of the additional power and 20 MW from Tanakpur has already been approved. “We have agreed to give, but we are locating where to give the supply from,” an Indian embassy official in Kathmandu told myrepublica.com.



PTC and PGCIL are said to be facing difficulties negotiating a power deal for Nepal for this winter from Bihar Electricity Board, given the power crisis faced by Uttar Pradesh.



“There is power shortage in Bihar as well. So it is getting extremely difficult to negotiate at this point of time. But we are trying,” a PGCIL official in the Indian team that participated in a November 8 stakeholders´ meeting on trans-border transmission lines told myrepublica.com.



akanshya@myrepublica.com



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