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Pakistan to Import Electricity from India
Mar 25, 2014

The long discussed Indo-Pak electricity deal has moved closer to reality with energy-starved Pakistan handing over draft of an initial power trade deal to India. The move comes as the World Bank has offered to finance the feasibility study and transmission line to import 1,200 megawatts (MW) of power from India. A draft of Memorandum of Understanding (MoU) was handed over to Indian authorities in a recent meeting held in New Delhi. India would respond to Pakistan after going through the draft of the initial deal.

Pakistan and India have constituted technical working groups which would review the aspects of the export of 500 MW of electricity to Pakistan. The Pakistani cabinet had decided in January to import electricity from India. The cabinet gave approval to the signing of a MoU between Pakistan and India for trade of electricity.The Water and Power Ministry in nPakistan had initiated negotiations with India in this regard.

The issue of electricity trade had come up for discussion during the meeting between Indian Commerce Minister and Chief Minister of Pakistani Punjab Shahbaz Sharif during his visit to India in December last year. Chief Minister Sharif had visited Mahatma Gandhi Power project in Haryana after which he had said Pakistan would welcome India's offer for supply of electricity to Pakistan at a reasonable rate.

India has expressed its intent to export electricity to the tune of 500 MW to Pakistan immediately if infrastructure for transmission of power is made available. Pakistan would import 500MW of power initially, to be enhanced to 1,200MW at a later stage. The estimates of required finance will be known once a feasibility study is done. Preliminary discussions with India were underway and tariff matters still needed to be finalised. However, the MoU will be an initial commitment to India and the government of Pakistan was also working on other power import projects like Casa-1,000MW and electricity purchase from Iran.

 


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