KATHMANDU, Nepal Nepal is expected to have surplus energy starting this monsoon, which India is eager to buy. Still, the Nepali private sector is not yet permitted to engage in power trade.
The government is considering revising the law allowing the private sector to engage in the electricity trade after the previous attempt to grant such permission failed.
The Electricity Act of 1992 prohibits the private sector from entering the power trade. As a result, the Ministry of Energy and Water Resources had previously held inter-ministerial consultations to allow the private sector to engage in domestic and international electricity trading.
Because the current law makes no provision for the private sector to trade in electricity, the private sector demanded that the government provide a way out in any way possible.
As a result, the energy ministry is currently working on a solution that would involve amending the Electricity Act.