India and Nepal signed two important agreements to enhance cooperation in the power sector, including the construction of new high-capacity cross-border transmission lines to promote regional energy trade and grid connectivity between the two countries, according to a statement by the Ministry of Energy.
As stated in the Ministry of Energy’s statement, the two agreements—which were signed between POWERGRID, an Indian Maharatna Central Public Sector Enterprise (CPSE), and the Nepal Electricity Authority (NEA)—are for the execution of the Inaruwa (Nepal)-New Purnea (India) 400 kV Cross-Border Transmission System and the Lamki (Dododhara) (Nepal)-Bareilly (India) 400 kV Cross-Border Transmission System.
The signing took place in the national capital in the presence of Kulman Ghising, Minister for Energy, Water Resources, and Irrigation of Nepal, and Manohar Lal, Union Minister for Power and Housing & Urban Affairs.
The agreements provide for the formation of two joint venture companies, one in India and one in Nepal, to construct these high-capacity power transmission lines. Upon completion, these projects are expected to significantly improve electricity trade between the two countries, enhance grid resilience, and support sustainable growth for 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 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 the 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.
At their meeting, the two ministers also discussed the status of current hydropower projects in Nepal, as well as future options for regional grid connectivity with the aim of enhancing energy security and facilitating the integration of clean energy resources into the electricity grids.
The two delegations recognized their mutual commitment to strengthening cooperation in the power sector and underscored the significance of cross-border electricity trade for economic growth and energy transition in South Asia.
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