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India Eases Power Import

  2 min 46 sec to read

In a significant move, the Central Government of India has decided to free the import of electricity. It has now been decided to allow import of power without the need for authorisation from the central government, according to a news report given by Business Line Daily. The move to “free’’ import of electricity was announced through a notification by India’s Union Ministry of Commerce and Industry on Friday evening. The “freeing of import’’ is done through an amendment in the import policy of electrical energy. The move comes even as the country is facing severe power shortage. “Import of electrical energy will not require authorisation,” Director General of Foreign Trade (DGFT) said in a notification. It said that the “import policy of electrical energy is revised from ‘restricted’ to ‘free’.”

Gross generation 

India Eases Power Import

The gross electricity generation in India from various conventional energy sources during April 2012-January 2013 was 7,62,7668 million units, as against the target of 7,71,866 million units, says a report by Indian news agency PTI. This generation is mainly from thermal, hydro and nuclear sources and import of hydro power from Bhutan during 2012- 13. Nuclear power registered a generation of 27,450 million units as compared to the target of 35,200 million units. The hydro power generation during the period was 99,071 million units as against the target of 1,22,045 million units. India imported 4,710 million units of hydro power from Bhutan against the target of 5,480 million units.

‘Big Opportunity for Nepal’ 

The Nepali private power producers welcomed the Indian government’s decision as a ‘big opportunity’. ‘Indian government decision is very supportive,’ says Gyanendra Lal Pradhan, Chairman of the Energy Committee of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The Nepali power producers have been lobbying for electricity import into India. ‘The joint team of FNCCI and Confederation of Indian Industry (CII) has long been reiterating this issue,’ Pradhan mentioned. 

The export of electricity to India is seen as one of the biggest trading potential of Nepal. Nepal is expected to enjoy surplus energy after the completion of ongoing hydle projects across the country by 2017. But, to benefit from this opportunity to export power to India, the various hurdles caused by political uncertainty and absence of investment friendly environment in Nepal need to be removed. The lack of nationwide power transmission network is also blamed as another hindrance to electricity export to India. ‘A clear national policy is needed to encourage and facilitate the power producers,’ Pradhan said. According to him, establishment of power trading company based on public-private-partnership model could pave the way for exporting the surplus electricity. ‘Similarly, the 30 year old existing policy on transmission line needs to be revised as well,’ he added. Pradhan also suggested de-regulation of power sector as different rules and regulations weigh on the development of new projects.

 

 

 

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