Energy Secretary Rajendra Kishor Chhetri and Indian Energy Secretary Pradeep Kumar Sinha signed on the bilateral agreement from their respective sides amidst a programme at the Office of Prime Minister and Council of Ministers here in the Capital on Tuesday.

Minister for Energy Radha Gyawali, Chief Secretary Leela Mani Poudyal, and Indian Ambassador to Nepal Ranjit Rae were present on the occasion. The preliminary signing on the initial draft of the agreement had taken place on September 4.

Governments of both the countries had approved the final draft of the agreement sometime ago.

Talking to media persons after the signing of the PTA, Energy Secretary Chhetri said with the final signing of the agreement a strong base has been created for addressing the problems of power crisis facing the country for a long time.

Construction of trans-border transmission line is moving ahead so as to import power from India, Energy Secretary Chhetri said. A secretary-level special mechanism has been constituted to clear possible difficulties in the enforcement of agreement and a joint-secretary level taskforce has also been formed to that end, he added.

As per the agreement, the secretary-level mechanism will meet once a year whereas the join-secretary-level body shall meet twice a year. The agreement is aimed at clearing the existing power crisis within the next three years.

Indian Energy Secretary Sinha said the Indian government is ready to cooperate with Nepal for power development.  The agreement has paved the way for Nepal for trading power with India and other third countries. A Power Trade Agreement on Arun III Hydropower Project will be signed soon, he added.