India and Nepal are finalising an agreement to provide the energy-starved Himalayan nation with electricity, India’s foreign minister said at the end of a three-day official visit yesterday.
Nepal’s communist insurgency, which lasted until 2006, and ensuing political instability have hampered the construction of new power plants, and Nepal could not afford to map out an energy strategy on its own.
A joint press released following Indian Foreign Minister Sushma Swaraj’s visit to Nepal said the two countries were able to agree on 26 issues including finalizing the power deal.
Under the agreement, India would export electricity to Nepal and help build hydroelectric power plants. Nepal has suffered from major power shortages with consumers facing power cuts up to 12 hours daily because the power plants are able to meet only half the total demand.
No other details on the agreement were made available.
India has a major influence over both the economy and politics in Nepal, and supplies all of Nepal’s oil needs and much of its trade.
