19:17 GMT17 February 2020
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    Nepal and India had mooted the idea of starting energy banking by 2019-20 during a meeting of the Nepal-India Power Exchange Committee in New Delhi in July this year. The energy banking concept means that when there is surplus energy in one country then electricity will be exported to the other country and vice-versa.

    India and Nepal have agreed on signing a crucial energy banking deal to ensure optimum utilisation of surplus electricity available between the two countries at any given time. 

    The decision was taken at the 13th meeting of the Power Exchange Committee (PEC) held in the Indian capital New Delhi on Thursday. 

    READ MORE: India Eases Cross-Border Power Trade Rules Ahead of Bhutanese PM's Visit

    A senior Indian government official, who did not wish to be named, told Sputnik that under the deal, Nepal would supply energy to India during the summer season and import energy from India during the winter season. The two countries have agreed on the draft of the guidelines containing the procedure to implement the deal.  

    As per the deal, if the quantum of energy exchanged is equal then there will be no charges levied. However, if one country exports more electricity to the other then the importing country will have to pay for the additional quantum of electricity.

    "Joint Secretary-level Joint Working Group and Joint Secretary-level Joint Steering Committee are expected to meet in January wherein they will endorse the directive", another official privy to the meeting told Sputnik.

    READ MORE: Nepal Unhappy With India Over Delay in Review of 'Unequal' Treaty – Source

    Under the power banking mechanism, one country exports electricity to the other when it has a surplus and imports back the same amount in case of a deficit.

    The two countries also discussed power tariffs pertaining to electricity imports and modality of the cross-border power transmission line. Nepal is currently purchasing 400 megawatts of electricity from India every day.

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    Tags:
    bilateral cooperation, sharing, electricity, energy, India, Nepal
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