During the inauguration of the Vibrant Gujarat Global Summit, Nepal’s Finance Minister, Prakash Sharan Mahat, announced a historic long-term power purchase agreement with India. The agreement signifies a substantial leap in energy cooperation between the two neighboring nations, aiming to export a colossal 10,000 megawatts (MW) of electricity to India over the next decade.
Transformative Impacts on Nepal’s Hydropower Sector and Investment Landscape
Minister Mahat emphasised the potential of the power purchase agreement to unlock significant investment opportunities in Nepal’s hydropower sector. By exporting a massive amount of electricity to India, Nepal foresees an economic boost and a pivotal role in the green energy transition for both nations. The agreement positions Nepal as a key player in the regional energy landscape and strengthens economic ties with India.
Catalyst for Economic Growth and Sustainable Energy Practices
This groundbreaking move is not only a strategic economic decision for Nepal but also aligns with the collective efforts of the region towards sustainable and green energy practices. Minister Mahat expressed optimism about the profound impact on Nepal’s hydropower sector, presenting a substantial investment opportunity that is expected to catalyse positive economic outcomes for both nations in the coming years.
As the Vibrant Gujarat Global Summit unfolds, the power agreement stands as a testament to the commitment of both nations towards regional cooperation, economic growth, and sustainable development. The anticipated influx of investments into Nepal’s hydropower sector is poised to reinforce the economic potential of the region, marking a significant step towards a more sustainable and interconnected future.
