Government gives in-principle nod for private sector to prepare for cross-border power trade, a first

The government has, for the first time, given in-principle consent for private sector companies to prepare for cross-border electricity trade. This opens a new avenue of opportunity for the private sector in power trading.

Under the new arrangement, companies that fulfill conditions set by the government will be able to carry out feasibility studies for electricity trade on the basis of a letter of intent. These companies will also be able to identify markets, hold discussions with partners, and prepare agreements.

Previously, there was no such pathway for the private sector to prepare for cross-border electricity trade. This is the first time the government has given such consent.

The government's decision is expected to make it easier for private companies to move ahead with the preliminary work needed for electricity trade in foreign markets.