Nepal and India have agreed to expand cross-border electricity trade, allowing Nepal to export up to 1,650 MW of power to India….reports Asian Lite News Desk
Nepal and India have agreed to significantly expand cross-border electricity trade, allowing Nepal to export up to 1,650 MW of electricity to India and import up to 1,400 MW under a new bilateral agreement.
The decision was taken during the 13th meeting of the Nepal-India Joint Steering Committee (JSC), an energy secretary-level mechanism held in Pokhara. The increased power exchange will be facilitated through the Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi 400 kV cross-border transmission lines.
The Dhalkebar-Muzaffarpur transmission line has been operational since 2016, while the Dhalkebar-Sitamarhi line is nearing completion, according to Nepal’s Ministry of Energy, Water Resources and Irrigation.
The Dhalkebar-Sitamarhi transmission line is being constructed by SJVN Arun-3 Power Development Company, a subsidiary of India’s state-owned SJVN Limited, which is also developing the 900 MW Arun III Hydropower Project in eastern Nepal.
The revised agreement increases the existing power trading capacity between the two countries. Under the previous arrangement, Nepal was permitted to export up to 1,100 MW of electricity to India and import up to 1,000 MW through the Dhalkebar-Muzaffarpur transmission line.
The expanded capacity follows the near completion of the Dhalkebar-Sitamarhi transmission line, enabling both countries to increase electricity transfers.
The meeting was co-chaired by Sarita Dawadi, Secretary at Nepal’s Ministry of Energy, Water Resources and Irrigation, and Pankaj Kumar, Secretary at India’s Ministry of Power. It was preceded by a meeting of the Joint Working Group at the Joint Secretary level.
Both sides also agreed to fast-track several new cross-border transmission projects to strengthen long-term energy cooperation.
The Joint Steering Committee approved the Detailed Project Report (DPR) for the Chameliya (Nepal)-Jauljibi (India) 220 kV double-circuit transmission line, with construction targeted for completion by December 2028.
It also agreed to expedite the formation of a joint venture between the Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (PGCIL) to develop the Inaruwa-New Purnea and Dododhara (New Lamki)-Bareilly 400 kV cross-border transmission lines. The Shareholders’ Agreement and Joint Venture Agreement for the projects have already been signed.
The meeting further approved the DPR for the Motihari-Nijgadh 400 kV double-circuit transmission line, which is expected to facilitate additional electricity exports from Nepal to India by 2034-35.
In addition, the committee approved plans to upgrade the Muzaffarpur-Dhalkebar 400 kV transmission line by replacing the existing conductor with a High Temperature Low Sag (HTLS) conductor to increase power transfer capacity.
The two countries also agreed to undertake additional technical studies before finalising the proposed Lucknow-Kohalpur (Lamahi) 400 kV transmission line.
The meeting reached an understanding on the New Butwal-Gorakhpur 400 kV cross-border transmission line. As the Nepal section is expected to be completed by August 2026 while the New Butwal substation will be ready only by December 2027, the line will temporarily operate at 220 kV.
According to Nepal’s Energy Ministry, the interim arrangement will allow Nepal to export up to 200 MW of electricity to India and import up to 130 MW until the substation is completed. The Nepal section of the project is being developed with funding from the US government’s Millennium Challenge Corporation (MCC).
