Finance

NEA Admits to Paying More for Power Imports from India After Initial Proposal Expired

November 9, 2025

The Nepal Electricity Authority (NEA) has acknowledged that it had to purchase electricity from India at a relatively higher rate after the validity period of the initial price proposals for winter power imports expired before implementation.

However, the NEA stated that neither its board nor the management acted in a way that harmed the institution or the nation. According to a statement issued by the NEA on Saturday, the agreement to import electricity from India was signed under the most competitive option available for managing the country’s power supply during the dry season.

The NEA had invited proposals from India’s PTC India Ltd and NTPC Vidyut Vyapar Nigam (NVVN)—a subsidiary of the Indian government—on July 29, 2025 for the supply of electricity to Nepal during the winter months.

PTC India had offered to supply electricity at INR 6.74 per unit on the condition that the deal be finalized by September 8, 2025, while NVVN proposed a rate of INR 7.70 per unit.

Due to delays in decision-making by the then NEA board and management led by former Energy Minister Deepak Khadka, PTC’s lower-priced proposal could not be executed within its validity period and was automatically cancelled. When the NEA invited new proposals on September 22, 2025, PTC India revised its rate to INR 6.95 per unit, and NVVN submitted a new offer of INR 7.67 per unit.

According to the NEA, even at the new rates, PTC’s offer was still INR 0.72 per unit cheaper than NVVN’s, making it the most economical option. The authority added that PTC’s new rate of INR 6.95 per unit was also lower than Power Exchange Company (PEC) India’s rate of INR 8.10 per unit and the previous year’s peak rate of INR 10 per unit on the Indian Energy Exchange (IEX).

Based on this assessment, the NEA Board on September 26, 2025 decided to purchase 80 MW of electricity from PTC India through the Bihar–Nepal 132 kV transmission line and additional power through the Dhalkebar–Muzaffarpur line from January to May 2026.