The Nepal Electricity Authority (NEA) has invited proposals to purchase electricity through open competition, but no proposals have been received. The NEA had invited proposals on January 19 to purchase 100 megawatts of electricity from India for the dry season. Despite issuing a notice asking for applications by January 28, no proposals have been received, said NEA spokesperson Rajan Dhakal.

The NEA has sought proposals to import electricity from India for the dry season from February to May. The NEA had sought proposals not exceeding Rs 6.60 per unit from February to March and Rs 6.90 per unit for April and May. That is why no company selling Indian electricity has submitted a proposal, sources said.

The NEA board meeting held on 15 Poush under the chairmanship of the then Energy Minister Kulman Ghising had decided to seek sealed quotation proposals from Category 1 Indian traders (trading companies) after giving a period of 10 days to purchase 100 MW of electricity through open competition during the dry season and seeking the consent of the Commission, if necessary, through public notice. The NEA had sought proposals as per the same decision.

The NEA has been importing electricity from India to meet domestic demand as electricity production is low during winter. India has renewed the permission given to Nepal to import 654 MW of electricity at competitive rates from the Indian Energy Exchange (IX) from 17 Poush to 17 Chaitra (1 January-31 March 2026). The Central Electricity Authority under the Ministry of Power of India has renewed the permission to import 654 MW of electricity round the clock (RTC) from the IX's day-ahead and real-time market.

The authority has been allowed to import 654 MW of electricity at competitive rates, including 600 MW through the Dhalkebar-Muzaffarpur 400 kV transmission line and 54 MW from Tanakpur-Mahendranagar.

Nepal has been purchasing electricity through competition in the IX's day-ahead and real-time markets. Accordingly, 'bidding' with price and quantity takes place on the day before the purchase. Proposals were invited from government-owned PTC India and NTPC Vidyut Vyapar Nigam (NVVN) on 13 Shrawan 2082 to purchase electricity through a bilateral agreement. At that time, Shakya was the Executive Director of the NEA, while Deepak Khadka was the Energy Minister.

PTC India had submitted a proposal on 23 Shrawan at 6.74 rupees per unit with a one-month deadline. Later, the deadline was extended by 15 days to 7 Asoj. But the process did not move forward as the NEA's board of directors did not take a decision. On 18 Bhadra, NVVN had proposed to sell 200 MW of electricity from Dhalkebar Muzaffarpur and 30 MW from the Tanakpur line at 7.70 rupees per unit.

After the Gen-G movement, the then Executive Director Ghising became the Energy Minister at the end of Bhadra. And, he transferred Shakya from the position of Executive Director and appointed Manoj Silwal. NVVN had sent a reply to the NEA's request to reduce the electricity purchase rate at 7.67 rupees per unit.

Meanwhile, PTC India had submitted a proposal on 6 Asoj regarding the NEA's rate review proposal to sell electricity at Rs 6.95 per unit from January 2026 to May 2026 through the Dhalkebar-Muzaffarpur 400 kV transmission line and the 132 kV Bihar-Nepal line. 

Silwal assumed office as the Executive Director on 7 Asoj, and the NEA's board of directors meeting held on 10 Asoj decided to issue a letter of intent to PTC India to import 180 megawatts of electricity for 24 hours for five months at Rs 6.95 per unit. Thereafter, a power purchase agreement was signed between the NEA and PTC India on 27 Asoj 2082. After receiving the consent of the Electricity Regulatory Commission, the proposal was sent to the concerned body of India on 14 Kartik 2082.

‘As per the agreement signed with PTC on 13 October 2025 to import 180 MW of electricity from 1 January 2026 to 31 May 2026, approval has not been received from the Designated Authority yet, so as per the agreement signed with PTC, electricity is not being imported from 1 January 2026, so the Authority will be directed to take necessary steps to implement the agreement without creating any liability for the Authority,’ the Authority’s Board of Directors has decided. Following the same decision, the Designated Authority of India has agreed to the PTC-Authority agreement on 3 January 2026 (19 Pus 2082).

In the Authority’s board meeting held on 6 January 2026 (22 Pus 2082), despite discussions and information that agreement had been received from India, no decision was taken. Similarly, the Authority’s Executive Director Hitendradev Shakya had said that electricity has started being imported through the PTC agreement from 13 January 2026 (29 Pus 2082).

NVVN had submitted a proposal to the NEA on December 15 (29 Mangsir) that it was ready to sell 100 MW of electricity for three months from January to March at 6.60 rupees per unit. The period of the proposal was fixed until 4 Poush. However, no decision could be taken on the proposal as the NEA board meeting was not held.

Now, the NEA will buy 654 MW at a competitive rate during the winter and additional as per the requirement through the Nepal-India Electricity Exchange Committee (PEC). Only a maximum of 350 MW of electricity can be imported through the PEC. The rate of electricity imported through the PEC has already been fixed for 2025. Shakya informed that electricity will be purchased at the same rate until March 2026. The NEA has stated that the price of electricity exchange through the 132 kV transmission line for 2025 has been fixed at 8.1 rupees (12 rupees 96 paisa) per unit.