KATHMANDU, Nepal - As Nepal's private sector prepares to sell electricity in India's power exchange market, its southern neighbor has informed independent power producers that no Chinese components will be used in its hydroelectric projects.
Several private sector power developers informed the Post that they had received such communications from the Indian side at various discussion forums.
This follows on the heels of Nepali private sector power developers discussing energy trading with Indian power providers.
"The Indian side has been flatly telling us that they won't buy electricity from projects with Chinese investment and even projects built by Chinese contractors," an officer of the Independent Power Producers' Association of Nepal (IPPAN) told the press upon the condition of anonymity.
"We have discussed the matter with officials of the Indian embassy and the Central Electricity Board of India, and they made it very clear that they are unlikely to buy electricity from projects with Chinese investment."
According to recent communications, the private sector will not be able to sell electricity with any Chinese inputs.