India’s tender shift toward China could light up Nepal’s hydropower future
Summary
India is preparing to lift restrictions on Chinese companies participating in government tenders, which could improve commercial relations and benefit Nepal's hydropower sector by potentially allowing electricity exports from Chinese-invested projects in Nepal to India.
Key Points
- India is moving to lift restrictions that barred Chinese companies from bidding on Indian government tenders imposed after the 2020 Galwan clash.
- India's previous guidelines discouraged electricity imports from Nepalese hydropower projects with Chinese investment, limiting investment in Nepal's sector.
- Improved India-China relations and restored air connectivity may lead India to ease conditions, benefiting Nepal's hydropower exports involving Chinese investors.
- Experts suggest Nepal should also focus on domestic electricity consumption and new technologies like data centers and Bitcoin mining to maximize energy use.
