KATHMANDU: Nepal and India have signed a joint venture (JV) agreement to construct two new 400 kV cross-border transmission lines, marking another milestone in bilateral energy cooperation.
The agreement was signed between Power Grid Corporation of India Limited (PGCIL) and the Nepal Electricity Authority (NEA) in the presence of India’s Minister of Power Manohar Lal Khattar and Nepal’s Minister for Energy, Water Resources, and Irrigation Kulman Ghising.
As per the agreement, two high-capacity transmission lines, Inaruwa–New Purnia (Nepal–India) and Dododhara–Bareilly (Nepal–India), will be developed under joint investment. Once completed, these projects are expected to significantly boost the power exchange capacity between the two neighboring countries.
At present, Nepal exports 1,125 megawatts of electricity to India, earning Rs 17.56 billion in revenue in the fiscal year 2024/25. Since November 2024, Nepal has also begun exporting 40 megawatts of power to Bangladesh via the Indian grid.
The two new projects come in addition to the ongoing Gorakhpur–New Butwal 400 kV transmission line, which is under rapid construction. When all three lines are operational, the electricity exchange capacity between Nepal and India is expected to reach around 6,000 megawatts.
According to the Ministry of Energy, these projects will help achieve the long-term goal of exporting up to 10,000 megawatts of electricity from Nepal to India by 2034, as envisioned under the long-term electricity trade agreement signed between the two countries in January 2024.
Officials said the new projects represent a major step forward in strengthening Nepal–India energy cooperation, while also contributing to the regional power market and enhancing Nepal’s hydropower export capacity.
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