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Home Politics

India-Nepal will strengthen power partnership, paving the way for export of 1,650 MW

by Rajiv Mishra
July 15, 2026
in Politics
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Kathmandu, July 15 (IANS). Nepal and India have agreed to increase the volume of electricity exchange between the two countries through two cross-border power transmission projects.

This decision was taken in the 13th meeting of Nepal-India Joint Steering Committee (JSC) held in Nepal’s western city of Pokhara. This was a bilateral meeting at the Energy Secretary level. The two countries agreed that Nepal will now be able to sell up to a maximum of 1,650 MW of power to India through two 400 KV cross-border transmission lines and import up to 1,400 MW of power from India.

The two transmission lines that will be used to exchange power are the Dhalkebar-Muzaffarpur 400 KV transmission line and the Dhalkebar-Sitamarhi 400 KV transmission line.

According to Nepal’s Ministry of Energy, Water Resources and Irrigation, among these, the Dhalkebar-Muzaffarpur Transmission Line is operational since 2016, while the Dhalkebar-Sitamarhi Transmission Line project is nearing completion.

SJVN Arun-Tien Power Development Company, formed by the Indian government company SJVN Limited to develop the 900 MW Arun-Tien hydroelectric project in the eastern part of Nepal, is also constructing the Dhalkebar-Sitamarhi transmission line.

Earlier, the two countries were allowed to export up to 1,100 MW of electricity from Nepal to India and import up to 1,000 MW of electricity from India through the Dhalkebar-Muzaffarpur transmission line.

Now, as the large capacity transmission line of Dhalkebar-Sitamarhi is almost ready, both the countries have decided to increase the limit of electricity trade.

The meeting was co-chaired by Sarita Dawadi, Secretary, Ministry of Energy, Water Resources and Irrigation of Nepal and Pankaj Kumar, Secretary, Ministry of Power, India.

Before the JSC meeting, a Joint Secretary level Joint Working Group (JWG) meeting was also held on Tuesday.

The two countries also agreed to accelerate work on several new large-capacity cross-border transmission projects.

According to a statement from Nepal’s Energy Ministry, the Detailed Project Report (DPR) of Chamelia (Nepal)-Jauljibi (India) 220 KV Double Circuit Transmission Line was approved at the meeting. Its construction is targeted to be completed by December 2028.

The meeting also agreed to expedite the formation of a joint venture company between Nepal Electricity Authority (NEA) and India’s Power Grid Corporation of India Limited (PGCIL). The company will develop Inruva-New Purnia and Dododhara (New Lamki)-Bareilly 400 KV cross-border transmission line projects.

Both the companies have already signed Shareholders Agreement (SHA) and Joint Venture (JV) agreement for these projects.

DPR of Motihari-Nijgarh 400 KV double circuit transmission line was also approved in the meeting. It is expected that this project will help in exporting additional power from Nepal to India by the year 2034-35.

Apart from this, the proposal to increase the capacity of Muzaffarpur-Dhalkebar 400 KV transmission line was also approved. For this, the existing wires will be replaced with high temperature low sag conductors, which will increase the capacity to deliver electricity.

The ministry said that additional technical studies will be conducted before finalizing the proposed Lucknow-Kohalpur (Lamhi) 400 KV transmission line project.

In the meeting, agreement was also reached regarding New Butwal-Gorakhpur 400 KV cross border transmission line.

The Nepal portion is expected to be completed by August 2026, while the New Butwal 400 KV substation will be completed by December 2027. Therefore, this transmission line will be temporarily run at 220 KV capacity until the substation is built.

The Nepal part of this project is being constructed with funding from the Millennium Challenge Corporation (MCC), an aid agency of the US government.

“Under this interim arrangement, this transmission line will be able to import up to 130 MW of power from India and export up to 200 MW of power from Nepal,” Nepal’s Energy Ministry said.

–IANS

AY/DKP

Tags: BusinessdiplomacyIANSinternationalNationalPoliticsSouth Asia

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