India’s state-owned NHPC Limited on Tuesday signed a memorandum of understanding with energy trading solutions company PTC India Limited for the sale of power to be generated from the proposed 750MW West Seti and 450MW Seti River-6 projects in Nepal.

According to a press statement issued by India’s Ministry of Power, PTC shall purchase the contracted capacity from NHPC from the date of commercial operation of the projects for onward sale to the state utilities, power distribution companies and bulk consumers on a long-term basis in India and neighbouring countries.

PTC shall also endeavour to sell any untied capacity on a medium or short-term basis on power exchanges, according to the statement.

A memorandum of understanding was signed by Abhay Kumar Singh, chairman and managing director of NHPC, and Rajib Kumar Mishra, chairman and managing director of PTC India, on Tuesday at NHPC Corporate Office, Faridabad.

The estimated cost of the two projects, according to the Investment Board, is $2.4 billion.

Nepal has awarded the much-touted West Seti and Seti River projects in western Nepal to India through a negotiation window, nearly four years after China pulled out.

A memorandum of understanding was signed between Investment Board Nepal and NHPC Limited on August 18 to develop the two joint storage projects totalling 1,200MW.