Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal has received approval from the Government of India to export an additional 80 megawatts (MW) of electricity, increasing the country’s total cross-border power export capacity to 1,130.9 MW.
According to the Ministry of Energy, Water Resources and Irrigation, India has agreed to purchase electricity generated from Megaghat Khola Hydropower (48.5 MW) and Karua Seti Hydropower (31.04 MW). With this latest clearance, Nepal’s electricity export to India has now reached 1,090.9 MW, in addition to 40 MW already approved for Bangladesh, taking the total approved export to 1,130.9 MW.
The latest approval was granted by India on September 21, 2025 (Bhadra 5, 2082 BS), under a bilateral medium-term power trade agreement. This permit is valid from August 21, 2025, to October 31, 2026, ensuring a stable export window for Nepal’s electricity trade with India.
Earlier, on August 10, 2025 (Shrawan 26, 2082 BS), India had already approved the export of 200 MW of electricity. The new clearance comes just weeks later, highlighting the growing momentum in Nepal-India power cooperation.
Nepal Electricity Authority (NEA) officials said that the increase in export volume marks another milestone in Nepal’s long-term plan to strengthen regional power trade. Currently, most of Nepal’s power exports to India are cleared through the Indian Energy Exchange (IEX), and the inclusion of additional hydropower projects will diversify Nepal’s electricity trade basket.
The Ministry has stated that with this approval, Nepal has reached a record-high export capacity of over 1.1 gigawatts (GW) for the first time. Energy experts believe that this approval not only ensures a stable revenue stream from power sales but also sets a strong precedent for future power trade with Bangladesh and other South Asian nations.
Nepal has been lobbying for broader market access in India for years, as surplus electricity production during the monsoon often goes unutilized. The recent approval adds optimism that Nepal’s ambition to become a regional clean energy hub could soon gain stronger traction.
Officials further hinted that negotiations for larger-scale export agreements are under discussion, and more announcements are expected in the coming months.
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