Nepal is eager to welcome private sector investment in its energy sector, said Sunil KC, President of the Nepal-India Chamber of Commerce and Industry (NICCI), during a meeting with visiting Indian Minister for Power, Housing and Urban Affairs, Manohar Lal Khattar, on Wednesday.

The discussion focused on enhancing energy cooperation between the two neighboring nations, particularly through private sector collaboration. KC emphasized that the recently signed Power Trade Agreement (PTA) between Nepal and India opens new opportunities for business-to-business (B2B) partnerships.

“NICCI will help facilitate energy investments from the Indian private sector to maximize benefits from the Power Trade Agreement,” said KC. “B2B collaboration is key to expanding trade and investment between our two countries.”

The meeting followed the signing of a crucial Memorandum of Understanding (MoU) on a cross-border transmission line on Tuesday. The 400 KV Inaruwa-New Purnia and Dodhara-Bareli transmission projects, to be developed by a joint company, aim to boost energy exchange between Nepal and India.

Minister Khattar, who arrived in Kathmandu at the invitation of Nepal’s Energy Minister Deepak Khadka, highlighted Nepal’s vast hydropower potential. “Nepal is a country with immense hydropower possibilities, and prosperity can be achieved through this sector,” he said. He also stressed timely completion of the Arun III Hydropower Project, a joint venture, and reiterated India’s willingness to invest further in Nepal’s energy sector.

The long-term PTA, signed in January 2024, targets exporting 10,000 MW of electricity from Nepal to India over the next decade. NICCI, which promotes bilateral trade, presented Minister Khattar with a business climate survey report to encourage more Indian investments in Nepal.

“NICCI will be happy to welcome more private sector power players in Nepal,” KC added, signaling Nepal’s readiness for deeper energy collaboration with India.