In a major relief for Nepal’s industries grappling with prolonged power outages, the Government of India has approved the export of up to 600 MW of electricity via the Muzaffarpur-Dhalkebar transmission line. The approved import hours include midnight to 4 AM, 6 AM to 5 PM, and 11 PM to midnight.
Additionally, diplomatic sources confirm that Nepal Electricity Authority (NEA) will now be able to import 54 MW more through the Tanakpur-Mahendranagar transmission line between 6 AM and 6 PM. This adjustment has extended Nepal’s daily electricity import duration from 12 hours to 16 hours.
This concession comes despite India’s growing domestic power demand, underscoring the special bilateral relationship and India’s Neighbourhood First Policy.
Nepal’s Worsening Power Crisis
Nepal formally requested 230 MW of electricity from India on March 20 to counter severe evening shortages. Currently, the country faces up to 12 hours of daily load-shedding in the industrial sector, despite importing over 700 MW from India. However, these imports were previously restricted to 6 AM – 6 PM, severely impacting businesses.
The crisis is driven by a decline in Nepal’s hydropower output during the dry season. Despite having an installed capacity of 3,300 MW, actual domestic production drops to around 1,000 MW due to the seasonal nature of Nepal’s run-of-the-river hydropower projects. The shortfall is most severe in the evening (6 PM – 10 PM), leading Nepal to request additional imports during these critical hours.
Seeking Long-Term Energy Stability
To mitigate the crisis, NEA had sought electricity from India’s exchange market. However, with prior imports allowed only during ‘solar hours,’ Nepal’s industries continued to suffer. The government now aims to develop large-scale hydropower projects to ensure long-term energy security and reduce reliance on seasonal imports.
