KATHMANDU: India has offered to supply 500 MW of hydro electricity power to Nepal to crunch its power crisis. Power Trading Corporation (PTC) Ltd has sent a letter to the Ministry of Water Resources, that it could provide 500 MW power to Nepal in 18 mont hs, according to secretary in the Ministry Mr Shanker Prasad Koirala.
The PTC has offered Rs 3 per unit of electricity to help it get rid of the current 16 hour load shedding. Nepal’s power generation capacity has gone down by more than 50 percent due to the low water level in its major hydro power plants.
In a letter sent to the Nepalese Ministry of Water Resources, PTC has also mentioned that it can re-import power from Nepal if the Himalayan nation manages to generate enough power to meet its internal demand.
Prime Minister Prachanda is leaving for Norway and Denmark as part of his tour to European countries starting from March 28. During his meeting with high officials in Norway and Denmark, use of thermal plant and wind mill power will mainly figure besides other issues of bilateral cooperation, according to officials close to the Prime Minister.
However, experts suggest that importing electricity from India will be much cheaper than installing thermal plants to generate electricity in order to fulfil domestic demand for power
Loading ...
March 24th, 2009 at 2:38 pm
Tall Indian offer on power supply
PRAGATI SHAHI
KATHMANDU, March 24 - Power Trading Corporation Ltd. (PTC) of India has proposed to supply additional 500 MW to Nepal.
Shankar Prasad Koirala, secretary at the Ministry of Water Resources, said PTC had stated in a letter to the ministry it could provide 500 MW in 18 months if Nepal government agreed to its proposal. PTC could maintain the supply for next 20 to 25 years with a single unit costing IRs 3 (NRs 4.80).
The proposal states PTC is ready to “re-import” power from Nepal if the latter manages to generate enough power to meet the domestic demand.
Nepal Electricity Authority (NEA) has declared that the country will have to cope with load-shedding for next five years due to a huge gap in demand and supply of power.
The current peak-hour power demand is 800 MW while the supply is only around 300 MW, resulting in an 18-hour day power cut.
According to Koirala, the Ministry has already apprised the Prime Minister Pushpa Kamal Dahal, vice-chairman of the National Planning Commission and Finance Secretary of the PTC proposal.
“The prime minister and other top officials are positive towards the PTC proposal,” Koirala said.
Officials say PTC’s power purchase rate is much cheaper than the existing purchase rate in the country.
According to Uttar Kumar Shrestha, acting managing director of the NEA, at present Nepal is importing 95 MW from India at the rate of IRs. 5.50 (NRs. 8.80) per unit. The PTC-proposed power purchase rate is the same as the rate set by private power producers. NEA purchases each unit from private power producers at the rate of Rs. 7 in the dry season and Rs 4 in the rainy season.
Shrestha said the NEA would not bear loss if power is imported from India in line with the PTC proposal.