India and Nepal have agreed to conclude Power Trading Agreement in 45 days

The Prime Minister of India, Mr. Narendra Modi paid an official visit to Nepal from August 3-4, 2014 at the invitation of the Prime Minister of Nepal, Rt. Hon`ble Mr. Sushil Koirala.

The two Prime Ministers expressed satisfaction over the excellent state of Nepal-India relations that encompass a broad spectrum of political, economic, social and cultural ties that are deep-rooted at both government and peoples` levels. The two Prime Ministers also underlined the need to further explore ways to enhance sub-regional cooperation particularly in the areas of trade, transit, connectivity and hydropower.

The Government of India announced a soft credit line of US$ 1 billion for the execution of infrastructure development and energy projects as identified and prioritized by the Government of Nepal. 

The two Prime Ministers directed the concerned authorities to conclude negotiations within 45 days on the Project Development Agreement (PDA) between the Investment Board of Nepal and GMR Group of India for the development of Upper Karnali hydropower project. They also directed the concerned authorities to conclude negotiations on the agreement on trade in power sector within 45 days. They expressed desire for early conclusion of other three PDAs namely Arun III, Upper Marsyangdi and Tamakoshi III. They emphasized that development of projects of this size will be a major catalyst for the development of Nepal’s enormous hydropower potential.

The Prime Minister of India extended invitation to Prime Minister of Nepal to pay an official visit to India at an early mutually convenient date. The Prime Minister of Nepal accepted the invitation. The date will be finalized and is said to be layer communicated through diplomatic channel.