• Privately-owned power gencos have requested the Centre to provide relaxations on duties and provide incentives for exporting electricity to neighbouring countries.
• Currently, India exports 1,200 Mw to Bangladesh, 450 Mw to Nepal and 3 Mw to Myanmar and imports around 1,200 MW power from Bhutan.
Significance of the move:
• India has a power production capacity of 375 GW, while peak demand is close to half at 184 GW, which renders surplus capacity unused.
• Allow gencos to earn foreign exchanges thereby offsetting losses.
• Provide cost-effective and reliable power to neighbours who are highly dependent on hydro power or on costly liquid fuel sources.
• Helps India to strengthen its strategic position in the region, thus countering China’s increasing influence.
India’s efforts towards regional energy cooperation:
• First phase of One Sun, One World, One Grid (OSOWOG) deals with Middle East-South Asia-South-East Asia.
• OSOWOG aims to connect 140 countries through a common grid to transfer solar power.
• In 2018, Ministry of power had issued guidelines for import/ export of electricity and provided a policy framework for cross- border electricity trade.
Mains Paper 3: Economy
Prelims level: One Sun, One World, One Grid
Mains level: India’s efforts towards regional energy cooperation