Kathmandu
Nepal and India have taken another big step in regional energy cooperation by signing an agreement to build two new high-capacity cross-border power transmission lines. The deal aims to boost electricity trade and strengthen regional power connectivity.
The Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (PGCIL) signed a Joint Venture and Shareholders’ Agreement in New Delhi. The agreement covers two 400 kV lines—Inaruwa (Nepal)–Purnia (India) and Lamki (Nepal)–Bareilly (India). Each country will build its section of the lines through separate joint venture companies.
Nepal’s Energy Minister Kulman Ghising called the signing a “major milestone” for expanding power trade and exporting surplus hydropower. India’s Power Minister Manohar Lal Khattar said the lines will strengthen energy exchange, grid stability, and economic growth on both sides.
Currently, the 400 kV Dhalkebar–Muzaffarpur line is the only major route carrying about 1,000 MW. Nepal now exports nearly 1,000 MW of power daily to India and Bangladesh.
With India agreeing to buy 10,000 MW from Nepal over the next decade, the new infrastructure is vital to meeting that goal. The agreement highlights growing cooperation in clean energy and Nepal’s emergence as a key electricity exporter in South Asia.
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What’s the deal?
Under the deal, the Indian joint venture will be majority-owned by Power Grid (51 percent), while the Nepali venture will be led by NEA (51 percent). Financing will come from 80 percent debt and 20 percent equity. Together, the projects will span more than 350 km across both countries.
