Nepal-India meeting in Pokhara hikes power purchase rate

Kathmandu. The 17th meeting of the Nepal-India Electricity Exchange Committee (PEC) concluded in Pokhara on Friday. The two-day meeting held on March 12-13, 2026 decided on the rate of import of electricity from various states of India for the next one year.

In the meeting, Nepal has agreed to import electricity from Bihar, Uttar Pradesh and Uttarakhand states of India. Nepal and India have been engaged in the process of purchasing power through PEC since 1992. The meeting held under the same process determined the power purchase rate for the next one year.

The Indian side in the meeting was lead by Mr. Vijay Kumar Singh, Board Member (Power Systems), Central Electricity Authority (CEA) and Mr. Hitendra Dev Shakya, Executive Director of Nepal Electricity Authority (NEA).

The Board of Directors of Nepal Electricity Authority (NEA) had given authority to the Managing Director to sign the agreement and negotiate the power purchase rate.

During the two-day talks, India had proposed to increase the power purchase rate by 5.5 percent, citing increased input costs. However, a study conducted on behalf of Nepal has shown that the purchase rate has decreased in the Indian electricity market.

Ultimately, the two sides agreed to increase the rate set last year by only 1.5 percent, which is the same rate as the previous year. Accordingly, the NEA has set the rate of electricity to be purchased through the 132 KV transmission line at Rs 8.22 per unit for the current fiscal year.

Similarly, the rate of electricity purchased at 33 kV level has been set at Rs 8.91 per unit and at 11 kV level it will be Rs 9.55 per unit. It has also been agreed to hold talks again next year regarding the structure of power purchase rate.

The agreement is expected to ensure power supply during the dry season that will occur in the months of April and April. Currently, the Nepal Electricity Authority (NEA) is importing around 12,000 to 14,000 megawatt hours (MWh) of electricity daily, which is expected to increase further in the coming days.

The agreement is expected to significantly help manage electricity supply at a time when regional energy markets are under increasing pressure due to tensions and wars in the Middle East.

The meeting was attended by Sanjeev Raya, Under Secretary at the Ministry of Energy, Water Resources and Irrigation, and representatives from the Ministry of Foreign Affairs. The meeting was also attended by First Secretary at the Embassy of India, Kathmandu, Shekhar Suman.

In the meeting, both sides expressed hope that the agreement would further strengthen Nepal-India energy cooperation and further consolidate the longstanding friendly relations between the two countries.