NEA Counters Misinformation, Citing Transparency and Lowest Rate in India Power Deal

Nepal Energy Import Stability

9th November 2025, Kathmandu

The Nepal Electricity Authority (NEA) has issued a stern appeal to the public, urging them not to be misled by false information circulating in media and social platforms.

Nepal Energy Import Stability

This campaign of misinformation is specifically targeting Energy Minister Kulman Ghising and NEA Executive Director Manoj Silwal concerning the recent power import agreement with India’s PTC India Ltd.

Minister Ghising explicitly clarified that the deal was executed with complete transparency and driven solely by Nepal’s national interest to ensure Nepal Energy Import Stability throughout the upcoming winter season.

Ghising explained that Nepal’s power system, which relies predominantly on river-flow-based hydropower projects, necessitates a dual strategy: exporting surplus electricity during the rainy monsoon and importing power during the dry season to meet domestic demand.

The recent agreement was a proactive and strategic step to lock in base load power for the winter months of January to May 2026.

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The Rationale Behind the PTC Agreement

The decision to sign the agreement with PTC India Ltd. was the result of a competitive and carefully managed process. The NEA sought proposals from major Indian government-owned agencies, including PTC and NTPC Vidyut Vyapar Nigam (NVVN).

• Lowest Rate Secured: The NEA’s decision was based on securing the lowest possible rate. PTC offered a Landed Tariff rate of INR 6.95 per unit, which was significantly lower than the INR 7.67 per unit rate quoted by NVVN. This difference provided a substantial saving for the nation.
• Regulatory Oversight: Minister Ghising stressed that the power purchase agreement received full approval from the Electricity Regulatory Commission (ERC) before execution. This ensures the decision adheres to national regulatory frameworks and is financially sound.
• Preventing High Costs: The long-term planning prevents Nepal from being forced to purchase electricity at extremely high rates—which could climb up to NRs 10 per unit—from the Indian Energy Exchange market during periods of peak demand and severe shortage, a scenario faced in previous years.

The agreement secures 180 MW of power, imported via the Dhalkebar–Muzaffarpur and Bihar–Nepal transmission lines, providing a critical buffer against potential blackouts.

Focus on National Energy Security

Minister Ghising firmly emphasized that the decision was not motivated by personal gain or undue influence. Instead, it represents responsible, long-term planning necessary for national energy security.

Nepal is actively working towards self-sufficiency but requires a reliable backup strategy during the dry season when river-flow decreases dramatically. The NEA management, under the leadership of Executive Director Manoj Silwal and Chairman Ghising, stated that no action has been taken that is detrimental to the institution or the nation.

They urged citizens not to be swayed by deliberate propaganda that attempts to distort the facts of a transparent and systemic power management decision. The goal is clear: to maintain stable power supply, avoid the need for load-shedding, and ensure the nation’s energy future is secured at the most economical rate possible.

For more: Nepal Energy Import Stability