The Independent Power Producers Association of Nepal (IPPAN) has said it will sell 2,200MW of electricity from the country's hydropower projects to Indian companies.
The statement from the IPPAN came at the end of a two-day power summit that had been held in the capital Kathmandu.
Two Indian firms, Vedanta Limited and Manikaran Power Limited, signed a Memorandum of Understanding to buy Nepal's hydropower.
On Wednesday, IPPAN's Vice-President Ashish Garg said that Vedanta Limited had initiated the process of signing a long-term power purchase agreement (PPA) to buy 2,000MW of electricity from Nepal in the next five years.
On Tuesday, Manikaran signed an MoU with Nepal's Bizbell Energy Pvt Ltd., and Kasuwa Khola Hydropower Limited to buy 200MW of power.
Nepal's law does not at present allow power-trading companies to sell electricity in the market, but it has opened the door for hydropower projects to sell the power directly in the domestic market and abroad.
According to the Nepal Electricity Authority, the country's total installed capacity of power projects is expected to reach 2,853MW in mid-July this year.