Kathmandu, Oct. 24 -- The government has decided to issue letters of intent but private firms seeking to trade electricity across Nepal's borders will have to wait until the Electricity Act is amended and licences are granted to them.

The letter of intent, opened by a ministerial-level decision of the Ministry for Energy, Water Resources and Irrigation, is a preliminary approval intended to help the private sector study the market and identify potential partners.

Posting on social media, Minister Biraj Bhakta Shrestha said that Nepal's energy sector has entered in a new phase in which private companies would participate not only in electricity generation but also in cross-border trading.

The Nepal Electricity Authority is currently the...