Nepal and India have reached an agreement on the construction modality for a cross-border transmission line, paving the way for Nepal to export 15,000 megawatts of electricity to India and Bangladesh by 2035. The agreement was finalized during a secretarial meeting between the two countries in New Delhi on Tuesday.
At the meeting, Suresh Acharya, Secretary of Nepal’s Ministry of Energy, Water Resources, and Irrigation, and Pankaj Agarwal, Secretary of India’s Ministry of Power, signed a memorandum of understanding (MoU). With this agreement, the construction process for the transmission line will now move forward.
Earlier, Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, had discussed the project with Indian government officials during his visit to India from November 3 to 6. He emphasized the need to accelerate transmission line construction, especially since India had already signed a power purchase agreement for 10,000 megawatts over the next decade.
Additionally, the 12th meeting of the Nepal-India Joint Steering Committee on January 22 laid the groundwork for advancing the project, facilitating electricity import and export between the two nations. This agreement was subsequently approved at the secretary-level meeting.
Key Agreements from the Meeting:
- 400 kV Transmission Lines: Two major cross-border lines, Inaruwa (Nepal)–Purnia (India) and Dodhara (Nepal)–Bareilly (India), will be completed by 2030.
- Joint Company Formation: Nepal Electricity Authority (NEA) and India’s Power Grid Corporation Limited will establish joint companies on both sides, with Nepal and India each holding a 51% majority stake in their respective companies. The remaining 49% will be owned by the other country.
- Chameliya-Jauljivi Transmission Line: A 220 kV double-circuit line’s Detailed Project Report (DPR) will be completed by 2025.
- Dhalkebar-Muzaffarpur Transmission Line Upgrade: Its capacity will be increased from 800 MW to 1,000 MW.
- Long-Term Transmission Projects: The 400 kV Nijgadh-Motihari and Kohalpur-Lucknow transmission lines are targeted for completion by 2035.
Nepal and India had previously signed a long-term electricity trade agreement to export 10,000 MW over the next decade. Nepal has also begun exporting 40 MW of electricity to Bangladesh.
The meeting was attended by key officials, including Joint Secretary of Nepal’s Energy Ministry Sandeep Kumar Dev, Director General of the Department of Electricity Development Nabin Raj Singh, NEA Managing Director Kulman Ghising, and NEA Deputy Managing Director Dirghayu Kumar Shrestha.
This agreement marks a major step toward strengthening energy trade and regional connectivity in South Asia.
