Nepal government has given its nod to Nepal Electricity Authority to trade electricity with India and Bangladesh, reports The Himalayan Times.
It is mandatory for the NEA to get approval of the government for inter-country electricity trade.
Barshaman Pun, minister of Energy, Water Resources and Irrigation, said the cabinet meeting on Monday had given the approval to sell electricity to India and Bangladesh when the domestic production is high and to import electricity from the neighbouring countries when the production is low. With the government's approval, NEA will now be able to buy and sell ele at comctricitypetitive price.
"Like trade in goods, electricity trade has also been approved in real time," said Pun.
He said NEA was given permission for inter-country trade so that it could keep record of electricity trade and price. NEA has also been given approval for electricity trade so that documents can be exchanged through electronic medium, The Himalayan Times reported.
NEA has been preparing for short-term sale of electricity in India's energy exchange market for a long time. In the energy exchange market of India, similar to shares, electricity can be bought and sold in real time.
NEA has designated Indian NTPC Vidyut Vyapar Nigam Ltd as its nodal agency to represent it in the market.