APRIL 20239expected to reduce carbon monoxide emission in two-wheelers by 50 percent and 30 percent in four-wheelers. In a major boost for energy cooperation between Nepal and India, private entities and companies of both countries inked an agreement for selling and buying energy directly. Earlier, this power was only enjoyed by two government or government-owned entities. Now the Nepal government has to make a law to allow the private sector to sell energy directly to external private companies.The agreement was signed during the final day of the eighth Power Summit, inaugurated by Prime Minister Pushpa Kamal Dahal 'Prachanda'. According to Independent Power Producers Association, Nepal, the summit is the largest power sector event in Nepal, with 800 energy sector-related participants - energy trading companies, power producers, financial institutions, transmission and distribution companies, consulting companies, vendors, and think tanks, among other stakeholders - participating, including 800 international delegates from more than 30 countries.The largest numbers of participants were from India. As per the agreement, Indian private sector hydropower project developers can buy electricity up to 200 MW from Nepal. The Nepal Power Exchange (NEPEX), which was established by the private sector with the aim of trading electricity abroad, signed the agreement with India's Steel Mint with IPPA, Nepal, President Krishna Prasad Acharya and Steel Mint's Kshitiz the signatories. NEPEX Director Uttam Blon said that he is hopeful that even if the Nepal government has not given the license for electricity trade to the private sector, it will give the license in the future. As per the agreement, both companies have joined hands to launch Power Mint Power Index in Nepal, which will serve as a platform for information-sharing on electricity tariffs, demand-supply, and other issues. Likewise, a MoU was signed between Manikaran Power India and Bizbell Energy, under which Bizbell Energy's 103.5 MW hydropower plant under construction in Humla will be purchased by the Indian company for electricity production. Also, there was a MoU between Manikaran Power Ltd India and Kasuwa Khola Hydropower Project Nepal for the purchase of power. As per MoU, Manikaran Power, as the leading power trader, shall work on securing PPAs (power purchase agreements) in the Indian market on a long-term basis whereas Nepal Power Exchange shall be the market intermediary for carrying out the transaction and getting the buyer and the seller together.Even though Indian companies such as SJVN and GMR Energy, which are developing 900MW Arun 3 and 900MW Upper Karnali projects, have signed direct power purchase agreements with Indian buyers, no domestic company in Nepal has so far signed an agreement with Indian buyers. Concluding the summit on Wednesday, Finance Minister Prakash Sharan Mahat said that the government is going to set up a mechanism in order to sell out the energy to India soon. The agreement is likely or setting up of such a mechanism will likely to announce during the India visit of Prachanda in May. Nepal's electricity law has no provision for granting any company other than Nepal Electricity Authority a right to trade power. Currently, the developers have only one option - to sell power to the Nepal Electricity Authority. India renewed the windfall charge on domestically produced crude oil at Rs.6,400 per tonne and discarded export duty on diesel. The export duty exemption for petrol and aviation turbine fuel (ATF) will continue. In the last revision, the Centre had reduced the windfall profit tax on domestically produced petrol to zero while it halved the levy on the export of diesel to Rs.0.50 per litre. The duty will be effective from April 19th, according to a notification issued by the Central Board of Indirect Taxes and Customs. In the last revision, the government had cut the tax on the export of diesel to Rs.0.50 per litre from Rs.1. The latest revision comes on the back of rise in oil prices, which have climbed up following a surprise cut in production Opec plus. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks. -Our Bureau. TOP STORIES INDIAN, NEPALI PRIVATE COMPANIES SIGN AGREEMENT FOR DIRECT ENERGY SALEWINDFALL TAX RENEWED ON LOCAL OIL CRUDE; DUTY ON DIESEL EXPORTS SCRAPPED
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