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Home Prime News

Nepal and India Agree to Expand Cross-Border Energy Infrastructure and Cooperation

CEO Tab by CEO Tab
January 24, 2025
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Nepal and India have agreed to increase the capacity of the Dhalkebar-Muzaffarpur Transmission Line, the primary infrastructure for cross-border energy trade between the two countries.

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India has consented to enhance the transmission line’s capacity by an additional 100 MW, raising its total capacity to 1,100 MW. This decision was finalized during a meeting of the Nepal-India Joint Technical Team (JTT) on energy held in New Delhi, India, on Tuesday.

Currently, the Dhalkebar-Muzaffarpur Transmission Line, a 140-kilometer high-voltage connection that became operational in February 2016, can carry up to 1,000 MW of electricity. Although its infrastructure is designed for 2,000 MW, only 1,000 MW can be utilized effectively due to the N-1 contingency protocol, which ensures reliability in the event of component failure.

Discussions during the bilateral meeting also covered the construction and upgrading of other high-voltage transmission lines. Key projects include the proposed 400 kV Inaruwa (Nepal)-Purnia (India) and Dodhara (Nepal)-Bareilly (India) transmission lines, with completion goals set for fiscal years 2027/28 and 2028/29, respectively.

Additional feasibility studies are being conducted for transmission lines along the Lamahi-Lucknow, Purnia-Anarmani, and Nijgadh-Motihari sections. Progress updates on the Butwal-Gorakhpur Transmission Line and the 400 kV Dhalkebar-Sitamarhi Transmission Line, being developed under the Arun III Hydropower Project, were also reviewed.

Nepal has set ambitious energy targets under its “Energy Development Roadmap-2081,” aiming to generate 28,500 MW of electricity by 2035. Of this, 13,000 MW is earmarked for domestic consumption, while 15,000 MW is intended for export, primarily to India. The roadmap includes an investment plan worth USD 46.5 billion for power generation and infrastructure development, including the installation of 6,431 circuit km of 132 kV transmission lines, 4,061 circuit km of 220 kV lines, and 6,440 circuit km of 400 kV lines, as well as upgrading substation capacity to 40,000 kVA.

India has agreed to purchase up to 1,200 MW of electricity from Nepal and has committed to importing up to 10,000 MW over the next decade as part of a long-term energy agreement.

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