India-Nepal Energy Deal: How New Power Lines Will Transform Regional Trade

According to the release, the agreements--signed between POWERGRID, a Maharatna Central Public Sector Enterprise (CPSE) of India, and the Nepal Electricity Authority (NEA)--cover the implementation of the Inaruwa (Nepal)-New Purnea (India) 400 kV and the Lamki (Dododhara) (Nepal)-Bareilly (India) 400 kV Cross-Border Transmission Systems.

The signing took place in the presence of Nepal's Minister for Energy, Water Resources and Irrigation, Kulman Ghising, and Union Minister for Power and Housing & Urban Affairs, Manohar Lal, in the national capital.

The agreements involve the incorporation of two joint venture entities--one in India and one in Nepal--to develop these high-capacity power transmission corridors. Once completed, the projects are expected to substantially enhance electricity trade between the two nations, strengthen grid resilience, and promote sustainable growth across the region.

"In the august presence of Shri Manohar Lal and Shri Kulman Ghising, Joint Venture and Shareholders' Agreements (JV&SHA) were signed between POWERGRID, a Maharatna Central Public Sector Enterprise (CPSE) of India, and the Nepal Electricity Authority (NEA). These agreements are for the incorporation of two joint venture entities - one in India and one in Nepal - for the development of high-capacity cross-border power transmission infrastructure," the release said.

"The proposed Cross-Border Transmission System Projects include the development of the Inaruwa (Nepal) - New Purnea (India) 400 kV Double Circuit (Quad Moose) Transmission Link and Lamki (Dododhara) (Nepal) - Bareilly (India) 400 kV Double Circuit (Quad Moose) Transmission Link. Once completed, these transmission corridors will substantially enhance the electricity exchange between India and Nepal, strengthening regional energy security, improving grid resilience, and contributing to sustained economic growth in both nations," it added.

During their meeting, the two ministers also reviewed the progress of ongoing hydropower projects in Nepal and discussed regional grid connectivity initiatives designed to improve energy security and integrate clean energy resources.

Both sides reaffirmed their commitment to deepening cooperation in the power sector, highlighting the strategic importance of cross-border electricity trade for economic growth and energy transition in South Asia.

"Today's meeting reinforces the growing momentum in India-Nepal energy cooperation, building upon decades of diplomatic ties and a shared commitment to sustainable development and energy security," the release said.

- ANI