SC dismisses writ petition against Nepal-India electricity trade agreement

Kathmandu, November 5 — The writ petition filed against the long-term electricity trade agreement between Nepal and India has been dismissed. The Supreme Court ruled to dismiss the writ petition on Tuesday.

The bench, consisting of Chief Justice Prakashman Singh Raut and Justices Sapana Pradhan Malla and Mahesh Sharma Paudel, dismissed the petition while issuing directive orders on certain points.

Supreme Court spokesperson Achyut Kuinkel stated that while the full bench of the Supreme Court decided to reject the writ petition, they issued certain directive orders on specific issues, which have not yet been made public.

Previously, the bench had scheduled the decision for October 29, but it was postponed to November 5.

In December 2023, the government led by Prime Minister Pushpa Kamal Dahal signed a 25-year long-term electricity trade agreement between Nepal and India. As part of the agreement, India is set to import 10,000 MW of electricity from Nepal over the next 10 years.

However, concerns arose over whether the electricity to be traded would be generated by Indian companies or Nepalese and other foreign companies. Critics argued that the agreement could violate Nepal’s sovereign rights. In response, former Secretary of the Ministry of Water Resources Suryanath Upadhyay and others filed a writ petition at the Supreme Court on February 5, 2024, challenging the agreement. Upadhyay claimed that the deal was against Nepal's Constitution and existing laws.

The petitioners argued that the agreement, under the guise of electricity trade, was structured in a way that primarily benefitted India and was against Nepal's national interest.

The case had been continuously heard since February 12, 2024, with the final hearing concluded on August 29, 2024.