Nepal, India agree to raise power export capacity to 1,650 MW through cross-border transmission lines

KATHMANDU: Nepal and India have agreed to increase Nepal’s electricity export capacity to 1,650 megawatts (MW) through cross-border transmission infrastructure, marking another major step in expanding bilateral energy trade.

The decision was taken during the meeting of the Nepal-India Joint Steering Committee (JSC) at the secretary level, held in Pokhara on Wednesday. The Nepali delegation was led by Energy, Water Resources and Irrigation Secretary Sarita Dawadi, while the Indian side was headed by Power Secretary Pankaj Agarwal.

According to Nepal’s Ministry of Energy, Water Resources and Irrigation, the two sides endorsed recommendations made by a joint technical team to enhance power transfer through the existing Dhalkebar–Muzaffarpur 400 kV transmission line and the planned Dhalkebar–Sitamadhi 400 kV transmission line.

Under the new agreement, the combined transmission capacity will be expanded, increasing import capacity from 1,000 MW to 1,400 MW and export capacity from 1,100 MW to 1,650 MW.

At present, the operational Dhalkebar–Muzaffarpur 400 kV cross-border transmission line facilitates electricity imports of up to 1,000 MW and exports of up to 1,100 MW between Nepal and India. The latest agreement is expected to significantly strengthen Nepal’s ability to export surplus hydropower, particularly during the wet season when domestic generation exceeds demand.

The meeting also approved the Detailed Project Report (DPR) for upgrading the capacity of the Muzaffarpur–Dhalkebar transmission line through High Temperature Low Sag (HTLS) conductor reconductoring, a technical enhancement that will allow greater electricity flow without constructing a new transmission corridor.

Prior to the secretary-level meeting, the Joint Working Group (JWG) at the joint secretary level met in Pokhara on Tuesday. The Nepali side was co-chaired by Joint Secretary Sandip Kumar Dev, while the Indian delegation was led by Joint Secretary Pankaj Kumar of India’s Ministry of Power. Recommendations prepared by the working group were reviewed and endorsed during the JSC meeting.

In another key decision, the two countries approved the Detailed Project Report for the 220 kV double-circuit Chameliya (Nepal)–Jouljibi (India) cross-border transmission line. The project is targeted for completion by December 2028 and is expected to improve electricity connectivity between western Nepal and northern India.

The meeting also agreed to accelerate the process of establishing joint venture companies to construct two major 400 kV cross-border transmission lines: Inaruwa–New Purnea and Dododhara (New Lamki)–Bareilly.

According to the ministry, the Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (PGCIL) have already signed the Shareholders’ Agreement (SHA) and the Joint Venture (JV) Agreement for both transmission projects, paving the way for implementation.

Looking beyond current infrastructure, Nepal and India also agreed to develop two additional high-voltage cross-border transmission lines to facilitate increased electricity exports from Nepal through 2034–35.

As part of that long-term strategy, the meeting approved the Detailed Project Report for the Motihari (India)–Nijgadh (Nepal) 400 kV double-circuit transmission line.

The two sides further agreed to carry out additional technical studies for the proposed Lucknow (India)–Kohalpur/Lamahi (Nepal) 400 kV transmission corridor before making a final investment decision.

The meeting also discussed progress on the New Butwal–Gorakhpur 400 kV cross-border transmission line. Since construction of the Nepal section is expected to be completed by August 2026, while the 400 kV New Butwal substation is scheduled for completion by December 2027, both sides reached a technical agreement to initially operate the line at 220 kV until the substation is fully commissioned.

Under this interim arrangement, the transmission line will be capable of importing up to 130 MW of electricity into Nepal and exporting up to 200 MW to India.

The ministry said the secretary-level Joint Steering Committee and the Joint Working Group were established under Article 5 of the Nepal-India Power Trade Agreement signed in 2014. These mechanisms are responsible for facilitating implementation of the agreement, providing policy guidance and monitoring progress on bilateral electricity cooperation.

Both sides have agreed that the meetings of the two mechanisms will be held alternately in Nepal and India every six months. The previous meeting was held in New Delhi in January/February 2025 (Magh 2081 BS).

The latest agreements come as Nepal continues to rapidly expand hydropower generation and seeks to strengthen regional electricity trade. Increasing cross-border transmission capacity is considered essential for exporting surplus electricity to India and supporting Nepal’s ambition of becoming a major clean energy exporter in South Asia.