India and Nepal are set to sign a long-term energy deal next week that would involve New Delhi importing 10,000 megawatts of electricity from the Himalayan state over the next 10 years. During Prime Minister Prachanda‘s recent India visit the two sides had agreed in principle that India would import 10,000 megawatts of electricity from Nepal over the next 10 years.

An initial agreement was signed on June 2 following delegation-level talks between Dahal and Modi here. But due to paucity of time, approval of the Cabinets of the two countries could not be obtained and the final text could not be inked during the visit.

The two sides have concluded the required processes and the agreement is ready to be signed next week.

The two sides are tentatively planning to sign the pact when Nepal’s energy secretary Dinesh Ghimire travels to India, Kathmandu-based sources said. The two sides expressed satisfaction that the deal on the long-term power trade that was completed during the visit will streamline the procedures for power trade and make it more predictable, said a statement issued by the ministry of foreign affairs after the visit.