Nepal and India have signed an agreement to construct two new cross-border transmission lines. The deal was reached during a meeting between Nepal’s Minister for Energy, Water Resources and Irrigation, Kulman Ghising, and India’s Minister of Power, Manohar Lal Khattar.
According to the Ministry of Energy, agreements have been signed for the construction of the 400 kV Inaruwa–Purnia and Lamki–Dodahara–Bareilly cross-border transmission lines. In the presence of Ministers Ghising and Khattar, the agreement papers were signed by Subhash Kumar Mishra, Deputy Executive Director of the Nepal Electricity Authority (NEA), and Sanjay Kumar Gupta, Chief Operating Officer of Power Grid Corporation of India Limited.
The Cabinet meeting held on October 16 had granted approval for the establishment of two joint venture companies between NEA and Power Grid for constructing the transmission lines and for NEA to invest equity in these companies.
With the signing of the joint investment agreement, the pathway has now opened for establishing the companies that will construct both transmission lines through joint investment.
Minister Ghising, who is currently in New Delhi to attend the 8th General Assembly of the International Solar Alliance, held talks with his Indian counterpart during the visit.
During the meeting at India’s Ministry of Power, the two sides discussed a wide range of issues, including Nepal-India energy cooperation, electricity trade, expansion of transmission lines, progress of hydropower projects under Indian investment, and long-term energy partnership between the two countries.
Minister Ghising stated that moving forward with the construction of two additional cross-border transmission lines is another significant milestone for bilateral and regional electricity trade. He expressed confidence that these lines will create the foundation for exporting Nepal’s electricity to neighboring countries and eventually enable Nepal’s access to the international energy market.
He also noted that the bilateral agreement would help attract both domestic and foreign investment in the development and expansion of Nepal’s hydropower sector.
Likewise, Indian Power Minister Khattar said that once the two new cross-border transmission lines are completed, electricity exchange between Nepal and India will become smoother, the regional grid will be strengthened, regional energy security will improve, and both countries will benefit economically, according to the Ministry of Energy.
