India has offered to sell 500 megawatts (MW) of electricity to power-deficient Pakistan at around Rs 7 to Rs 8 per unit, to be delivered at the Wagah-Attari border.
“India has proposed a tariff of Rs 7-8 for a unit of power, which is almost similar to the electricity tariff prevalent in that country. Further discussions on tariff and technicalities on wheeling out power will be held soon,” a senior Indian Power Ministry official was quoted as saying by The Indian Telegraph.
On the Indian side, the Central Electricity Authority and Power Grid Corporation will be the nodal technical agencies, while Pakistan has assigned the job to National Transmission and Despatch Company and the chief engineering adviser.
Officials said there was a broad agreement that cross-border trading through HVDC (high voltage direct current) coupling “as is being done with Bangladesh”‘ could be considered to ensure the independent operation of both the grids.
Lahore has complete transmission lines and grids, which are near the grid in Punjab, so, it will be economical to transfer power through Amritsar, officials said.
The project will require 45 kms of 220kv transmission lines on both sides of the border, 25kms in India and 20kms in Pakistan.
Nisha Taneja, trade analyst with the Indian Council for Research on International Economic Relations, said, “Improved economic relations would infuse confidence among the two neighbours. The South Asian nations cannot be isolated to the globalisation process and economic integration among them is the need of the hour.”
According to analysts, the move to offer electricity to Pakistan was a
broader strategic initiative at a time India itself is facing power crunch.